During the Recession of 2001, the Leftward Shifts in Aggregate

question 7

Multiple Choice

During the recession of 2001, the leftward shifts in aggregate demand and aggregate supply that occurred at that time necessarily reduced

• A) real GDP only.
• B) the price level only.
• C) real GDP and the price level.
• D) potential output.

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Definitions:

Colonial Unrest

The dissatisfaction, resistance, or rebellious activities among colonized peoples or territories against the ruling powers.

Parliament

The supreme legislative body in a parliamentary system, composed of elected representatives who make laws, oversee the government, and represent the electorate.

Legislation

The act of making or enacting laws, typically conducted by a legislative body such as a parliament or congress, as a vital component of the governance process.

British Military

The combined armed forces of the United Kingdom, consisting of the Royal Navy, British Army, and Royal Air Force, responsible for the defense of the UK and its overseas territories.