The four key markets in the simple AD/AS model are
A)food,housing,clothing,and automobiles.
B)consumption,investment,bond,and foreign trade.
C)goods and services,resources,foreign exchange,and loanable funds.
D)labor,public goods,bond,and the stock market.

Question

Quizplus · Accepted Answer

The four key markets in the simple AD/AS model are goods and services market, resources market, foreign exchange market, and loanable funds market. These markets determine the levels of output, employment, and prices in an economy. Option A includes specific goods, while option B includes types of economic activities, but neither of them represents the four key markets in the AD/AS model. Option D includes only the labor market and financial markets, which is not comprehensive enough to be considered the four key markets.

The Four Key Markets in the Simple AD/AS Model Are