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.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: If there is an increase in expected
Q2: The 2008-2009 recession must have been a
Q4: If demand pull inflation occurs when the
Q5: Over a business cycle,the quantities of capital,human
Q6: Give examples of factors that decrease aggregate
Q7: The quantity of real GDP supplied _
Q8: When the U.S.price level rises relative to
Q9: "The aggregate demand multiplier results in the
Q10: A rise in the price level brings
Q11: When the aggregate supply curve intersects the