Consider the Basic AD/AS Model with a Very Steep,positively Sloped

question 24

Multiple Choice

Consider the basic AD/AS model with a very steep,positively sloped AS curve.A negative aggregate demand shock will result in

• A)an increase in the price level and a decrease in real national income.
• B)an increase in both the price level and real national income.
• C)a decrease in the price level with almost no change in real national income.
• D)a decrease in the price level and an increase in real national income.
• E)no change in either price level or output.

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Definitions:

FUO

Stands for Fever of Unknown Origin, referring to a condition where a patient has an elevated temperature for an extended period without an apparent cause.

Pulse Deficit

The difference between the heartbeats felt at the wrist and the beats heard through a stethoscope at the chest, indicating a possible cardiac issue.

Dysrhythmia

An abnormality in the rhythm of the heart, which can include irregular, too fast, or too slow heart rates.

Inefficient Contraction

A condition where the muscles do not contract effectively, which can impact various bodily functions and physical activities.