Using the Aggregate Demand-Aggregate Supply Model, Predict What Happens in the Short

question 49

Multiple Choice

Using the aggregate demand-aggregate supply model, predict what happens in the short run when there is a general decrease in raw materials cost.

• A) The aggregate supply curve shifts right; the aggregate demand curve is not affected; price level decreases; real GDP increases.
• B) The aggregate supply curve shifts left; the aggregate demand curve is not affected; price level increases; real GDP decreases.
• C) The aggregate demand curve shifts right; the aggregate supply curve is not affected; price level and real GDP increase.
• D) The aggregate demand curve shifts left; the aggregate supply curve is not affected; price level and real GDP decrease.

---

Definitions:

Vivid Flashbacks

Intensely clear and powerful memories of past experiences, often associated with traumatic events, that involuntarily come to mind.

PTSD

Post-Traumatic Stress Disorder, a condition of persistent mental and emotional stress occurring as a result of injury or severe psychological shock.

Overdiagnosing

The practice of identifying an illness or condition more frequently than it is actually present, often leading to unnecessary treatment or intervention.

Broader Definition

involves expanding the meaning or scope of a concept to encompass a wider range of phenomena or interpretations.