AD/AS model

AD/AS model

University

15 Qs

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AD/AS model

AD/AS model

Assessment

Quiz

Social Studies

University

Medium

Created by

Katarzyna Maciejowska

Used 4+ times

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15 questions

Show all answers

1.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

The assumption that prices are flexible means that prices

adjust to the level of demand and supply

can change in the long run

are set for some period of time

does not depend on the money supply

2.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

The assumption that prices are sticky means that prices

have to be attached to a product

do not change in a short run

follow movements of demand and supply

are fixed for some time

3.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

When the prices are flexible then the level of output depends on

the demand

the supply of capital and labor

the technology

the fiscal or monetary polity

4.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

When the prices are sticky then the level of output depends on

the demand

the supply of capital and labor

the technology

the fiscal or monetary polity

5.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

In AD/AS model the Agreggated Demand (AD) curve

links prices with the demand

depends on the production technology

is downward sloping

depends on the level of money supply

6.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

In AD/AS model the Agreggated Supply (AD) curve

links prices with the demand

depends on the production technology

depends on the time horizon

depends on the level of money supply

7.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

The Long Run Aggregated Supplay (LRAS) curve

is vertical

is horizontal

assumes that prices are flexible

assumes that prices are sticky

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