The Intersection of the Inflation Adjustment Line and the Aggregate

question 28

Multiple Choice

The intersection of the inflation adjustment line and the aggregate demand curve determines the level of

• A)real GDP and inflation in the long run.
• B)real GDP and inflation in the short run.
• C)potential GDP and inflation at any given time.
• D)potential GDP and the price level at any given time.
• E)real GDP and inflation at any given time.

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Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram.

Alleles

Different forms of a gene that exist for a particular trait, where variation can lead to differences in the expressed features of organisms.

Teratogens

Substances that during pregnancy can cause development disorders or birth defects in the unborn child.

Enzyme

Biological molecules that significantly speed up the rate of virtually all of the chemical reactions within cells.