Multiple Choice
Which of the following best describes the aggregate demand and aggregate supply model?
A) Aggregate supply adjusts to equate aggregate demand at the prevailing market prices.
B) The price level adjusts to equate aggregate demand to aggregate supply.
C) Aggregate demand adjusts to equate aggregate supply at the prevailing market prices.
D) Both aggregate demand and supply adjust to become equal at the prevailing market prices.
Correct Answer:
Verified
Correct Answer:
Verified
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