Consider the AD/AS Macro Model

question 110

Multiple Choice

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

• A)rise in real GDP but price level changes will be indeterminate.
• B)rise in real GDP and a rise in the price level.
• C)rise in real GDP and a fall in the price level.
• D)an indeterminate change in real GDP and a rise in the price level.
• E)an indeterminate change in real GDP and a fall in the price level.

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Definitions:

Hydrogenation

The chemical reaction of adding hydrogen to an organic compound, often used to convert unsaturated bonds to saturated ones.

Cyclobutene

A cyclic hydrocarbon molecule consisting of a ring of four carbon atoms connected by double and single bonds.

Cyclopentene

A cyclic alkene with a five-membered ring, characterized by the presence of a carbon-carbon double bond, making it reactive in chemical syntheses.

Hydrogenation

The chemical reaction where hydrogen is added to another compound, often used to convert unsaturated bonds to saturated ones in hydrocarbons.