The three main components of the aggregate demand-aggregate supply model include
A)AD, SRAS, LM.
B)SRAS, LRAS, IS.
C)AD, IS, LM.
D)AD, SRAS, LRAS.

Question

Quizplus · Accepted Answer

The aggregate demand-aggregate supply model includes the AD curve which represents the demand for goods and services in the economy, the short-run aggregate supply (SRAS) curve which represents the supply of goods and services in the short-run, and the long-run aggregate supply (LRAS) curve which represents the supply of goods and services in the long-run. Choice D includes all three components.

The Three Main Components of the Aggregate Demand-Aggregate Supply Model