An Important Merit of the AD-AS Model,compared to the Basic

Multiple Choice

An important merit of the AD-AS model,compared to the basic Keynesian model,is that it can explain how different types of economic shocks can simultaneously alter both the level of ___________ and also the ___________.

A) output;inflation rate
B) output;general price level
C) output;unemployment rate
D) output;exchange rate
E) output;interest rate