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
A. AD only includes consumption, investment, and government purchases, while the AD-AS model assumes AD includes consumption, investment, government purchases and net exports.
B. 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.
C. the economy does not experience long-run growth, while the AD-AS model assumes there is constant inflation in the economy.
D. potential GDP increases continually, while the AD-AS model assumes the LRAS does not change.
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