Aggregate demand and supply analysis can be used ________.
A) to examine the effects of macroeconomic shocks on prices
B) to build the LM curve
C) as an alternative to IS LM model
D) to value real assets in the long run

Question

Quizplus · Accepted Answer

Aggregate demand and supply analysis is a macroeconomic framework that is used to study the effects of macroeconomic shocks on prices. It examines how changes in aggregate demand or supply affect output, employment, and prices in the economy. It is not used to build the LM curve, is not an alternative to the IS LM model, and is not used to value real assets in the long run.

Aggregate Demand and Supply Analysis Can Be Used ________