Which of the Following Is Not an Assumption Made by the Dynamic

question 235

Multiple Choice

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?

• A)Potential real GDP increases continuously.
• B)The aggregate demand curve shifts to the right during most periods.
• C)The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.
• D)Aggregate demand and potential real GDP decrease continuously.

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Definitions:

Socialize

The method by which people assimilate and embrace the standards, morals, and actions considered acceptable within their community or social circle.

Social Consequences

The outcomes or effects that an action or event has on the social fabric and interactions within a community.

Interact

To act in response to something, often referring to the action or influence of objects or people on each other.

Workplace

An location where people are employed and engage in tasks related to their occupation; can refer broadly to an office, factory, or any organizational setting.