Question 1

Changes in the price level of the different components of aggregate demand are reflected in the AD/ASAD/AS macroeconomic model by a ________________________.

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a) shorter distance to equilibrium point


b) longer distance to equilibrium point


c)  flatter top portion of AD curve


d) downward sloping AD curve



Question 2

Question 5 Unsaved

Why is productivity growth considered to be the most important factor in the AD/ASAD/AS model?


a) it shifts the AD curve in the short-term


b) it shifts the AS curve in the long-term


c) it shifts the AS curve in the short-term


d)  it shifts the AD curve in the long-term