Most economists use the aggregate demand and aggregate supply model primarily to analyze which of the following?
A) short-run fluctuations in the economy
B) the effects of macroeconomic policy on the prices of individual goods
C) the long-run effects of international trade policies
D) productivity and economic growth

Question

Quizplus · Accepted Answer

The aggregate demand and aggregate supply model is primarily used to analyze short-run fluctuations in the economy, including changes in output, employment, and prices. It can also be used to analyze the effects of macroeconomic policy on the economy, such as fiscal and monetary policy. However, it is not typically used to analyze the long-run effects of international trade policies or productivity and economic growth.

Most Economists Use the Aggregate Demand and Aggregate Supply Model