QuestionJune 4, 2025

According to the AD.-AS model, demand shocks affect real gross domestic product growth while real shocks do not affect real gross domestic product growth. False True

According to the AD.-AS model, demand shocks affect real gross domestic product growth while real shocks do not affect real gross domestic product growth. False True
According to the AD.-AS model, demand shocks affect real gross domestic product growth while real shocks do not affect real gross
domestic product growth.
False
True

Solution
4.0(187 votes)

Answer

False Explanation 1. Define Demand Shocks Demand shocks affect the aggregate demand curve, shifting it right or left, impacting real GDP growth. 2. Define Real Shocks Real shocks affect the aggregate supply curve, influencing production costs and potential output, but can also impact real GDP growth.

Explanation

1. Define Demand Shocks<br /> Demand shocks affect the aggregate demand curve, shifting it right or left, impacting real GDP growth.<br />2. Define Real Shocks<br /> Real shocks affect the aggregate supply curve, influencing production costs and potential output, but can also impact real GDP growth.
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