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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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