Which of the following is considered in the AS/AD model but was not considered in the short-run macro model?
A) The effect of price changes.
B) The effect of interest rate changes.
C) Increases in government spending.
D) Monetary policy.
E) Decreases in government spending.

Question

Quizplus · Accepted Answer

The AS/AD model considers the effect of price changes on aggregate supply and demand, which is not typically considered in the short-run macro model.

Which of the Following Is Considered in the AS/AD Model