Using Figure 8

question 7

Multiple Choice

Using Figure 8.5,if the equilibrium real output is Q₂ then

• A)Aggregate demand must be AD₁.
• B)Aggregate demand could be either AD₁ or AD₂ depending on the level of aggregate supply.
• C)The equilibrium price level is P₂.
• D)Aggregate supply must be AS₁ and the equilibrium price level must be P₁.

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Definitions:

Peduncles

Stalk-like structures in plants or the brain, serving as connectors or support, such as the cerebellar peduncles that connect the cerebellum to the brainstem.

Cerebellum

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

Brainstem

The structure in the brain that connects the spinal cord to the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.

CNS

Stands for Central Nervous System, which comprises the brain and spinal cord, serving as the primary processing center for the entire nervous system.