The Diagram Below Shows an AD/AS Model for a Hypothetical

question 61

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-4 Refer to Figure 24-4.The positive aggregate supply shock shown in the diagram results in a new short-run equilibrium where the price level is ________ and real GDP is ________.

• A)60; 1000
• B)60; 1300
• C)90; 750
• D)90; 1200
• E)110; 1300

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Definitions:

Apartheid

A policy or system of segregation or discrimination on grounds of race, specifically the former institutionalized racial segregation and discrimination in South Africa.

Achieved Status

A social position that an individual gains as a result of personal effort, talent, or achievement, as opposed to ascribed status, which is inherited or assigned at birth.

Institutionalized Racism

Systemic policies and practices within institutions that collectively result in unequal opportunities and impacts for racial or ethnic groups.