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

Question

Quizplus · Accepted Answer

In the short run, potential GDP is assumed to remain constant, focusing on fluctuations around this level.

The Study of Short- Run Cyclical Fluctuations Usually Assumes, for Simplicity