Solved

When Using the AD-AS Model to Understand Business Cycles, the Question

Question 4

Multiple Choice

When using the AD-AS model to understand business cycles, the question, "what are the fundamental causes of business cycles?" can be thought of as the question:


A) "what factors move the economy away from long-run equilibrium?"
B) "what factors move aggregate demand and aggregate supply in different directions?"
C) "what factors increase or decrease potential GDP?"
D) "what factors increase or decrease the expected rate of inflation?"

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions