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Which of the following is a major difference between the AD-AS model and the dynamic AD-AS model? The dynamic .AD-AS model assumes the economy does not experience long-run growth, while the AD-AS model assumes there is constant inflation in the economy. AD only includes consumption, investment and government purchases, while the .AD-AS model assumes .AD includes consumption investment government purchases and net exports. the SRAS is stable and will not shift while the AD-AS model assumes the SRAS can only change with an exogenous event such as oil price changes. potential GDP increases continually, while the AD-AS model assumes the LRAS does not change.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9444335

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