The AS/AD model looks similar to the microeconomic supply and demand model
A)but is not based on it.
B)is based on the microeconomic supply and demand model because the AS/AD is a macro representation of the micro model.
C)is based on the microeconomic supply and demand model because both are based on the principle of substitution.
D)is based on the microeconomic supply and demand model because both are based on opportunity costs.

Question

Quizplus · Accepted Answer

The AS/AD model is a macroeconomic model that looks similar to the microeconomic supply and demand model but is not directly based on it. It represents aggregate supply and demand in the economy, rather than individual markets.

The AS/AD Model Looks Similar to the Microeconomic Supply and Demand