If the Public Does Not Believe the Government's Claim That

question 139

Multiple Choice

If the public does not believe the government's claim that it will pursue low inflation policies, and the government then goes ahead and adopts an expansionary policy as the public expected, then

• A)the IA line will shift up after the AD curve shifts right.
• B)the IA line will shift down after the AD curve shifts right.
• C)real GDP will increase.
• D)the IA line will shift up before the AD curve shifts right.
• E)the IA line will shift down before the AD curve shifts right.

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Definitions:

Emulsification

The process by which large fat droplets are broken down into smaller, uniformly distributed particles, usually aided by substances called emulsifiers.

Lipid Digestion

The process of breaking down fats into fatty acids and glycerol, mainly occurring in the small intestine.

Surface Area

The total area of the surface of a three-dimensional object.

Active Transport

The movement of molecules across a cell membrane from a lower to a higher concentration, requiring energy in the form of ATP.