According to the AS-AD Model

question 3

Multiple Choice

According to the AS-AD model,

• A)the aggregate quantity supplied is typically greater than the aggregate quantity demanded,thereby leading to unemployment.
• B)the equilibrium is where the AS curve crosses the AD curve,but the amount of real GDP at this point is not always equal to potential GDP.
• C)the aggregate quantity demanded is typically greater than the aggregate quantity supplied,thereby leading to inflation.
• D)the AS curve is always equal to potential GDP.
• E)changes in the amount of potential GDP is the only factor that shifts both the aggregate supply curve and the aggregate demand curve.

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Definitions:

Dieting

The practice of eating in a regulated manner to achieve or maintain a specific body weight.

Cortisol

A steroid hormone released by the adrenal glands in response to stress or low blood-glucose concentration.

Self-Regulation

The ability to manage one's emotions, thoughts, and behaviors in accordance with long-term goals.

Temporal Discounting

The tendency of people to value immediate rewards more highly than future rewards, leading to impulsive decision-making.