In an AD-AS Model with an Upward Sloping AS-Curve, What

question 29

Multiple Choice

In an AD-AS model with an upward sloping AS-curve, what would happen if oil prices increased and the Fed responded by restricting money supply?

• A)real output would increase and the price level would remain the same
• B)real output would remain the same but the price level would decrease
• C) real output would decrease and the price level would increase sharply
• D)real output would decrease and the price level would decrease sharply
• E)real output would decrease but we can't tell what would happen to the price level

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Definitions:

Arthritis

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Nursing Diagnosis

A clinical judgment about individual, family, or community responses to actual or potential health problems/life processes that provide the basis for selecting nursing interventions.

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A part of the brain located at the back of the skull, responsible for coordinating voluntary movements, balance, and posture.

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Physical harm or damage to the body caused by an external force, which can be severe and require urgent medical attention.