Consider the AD/AS macro model.The study of short-run cyclical fluctuations usually assumes,for simplicity,that there are no changes in
A)the AS curve.
B)potential GDP.
C)either the AS curve or potential GDP.
D)either the AD or AS curves.
E)the intersection of the AD and AS curves.

Question

Quizplus · Accepted Answer

Assuming no changes in potential GDP allows for a focus on short-run cyclical fluctuations in the economy without complicating the analysis with long-run growth trends.

Consider the AD/AS Macro Model