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The AD-AS Model Predicts That a Positive AD Shock Will

question 51

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The AD-AS model predicts that a positive AD shock will cause the price level to ___________,from the initial to a new long-run equilibrium level.But the model is silent about how fast the price level will ___________ from the initial to the new level;the model cannot explain ___________.


Definitions:

Type of Audience

Categories or classifications of listeners or viewers based on characteristics like demographics, interests, or behavior, used in targeting communication.

Core Principles

Fundamental beliefs or guidelines that serve as the foundation for a system, organization, or approach.

Honesty

The quality of being fair, truthful, and sincere in one's actions, communications, and business dealings.

Need Awareness Phase

The initial stage in the buying process where a potential customer recognizes they have a problem or need that could be satisfied by a product or service.

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