Question

Which of the following things are taken into consideration when using the aggregate demand-aggregate supply (AD-AS) model to illustrate growth and changes in the economy? Group of answer choices

a.The speed of change from expansions to recessions.
b,Increased labor productivity.
c.Social capital and goodwill.

Answer 1

The correct option is B

Step-by-step explanation:

The AD- AS (Aggregate demand -Aggregate Supply) model, is the one which states or explains the price level as well as the output through the relationship among the aggregate supply and aggregate demand.

When this model is used for illustrating the growth in the changes in the economy by taking into consideration the factor of the increased labor productivity.