FIGURE 23-3 Refer to Figure 23-3

question 61

Multiple Choice

FIGURE 23-3 Refer to Figure 23-3.Suppose the price level in Economy A is above .Which of the following statements describes what would occur?

• A)The AD curve would shift to the right until macro equilibrium is reached.
• B)Real GDP would be below its equilibrium level which would put downward pressure on the price level until it reaches macro equilibrium at .
• C)The amount of output supplied by firms is greater than total desired expenditure; excess supply will put downward pressure on the price level until it reaches macro equilibrium at .
• D)Real GDP would be below its equilibrium level which would put upward pressure on the price level until it reaches macro equilibrium.
• E)The AS curve would shift to the left until macro equilibrium is reached.

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Definitions:

Fight-or-flight Response

A physiological reaction to perceived harmful events, attacks, or threats to survival, initiating a state of heightened readiness for physical action.

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce hormones that help regulate metabolism, immune system, blood pressure, response to stress, and other essential functions.

Stress Hormones

Chemical substances produced by the body, like cortisol and adrenaline, that increase in response to stress, affecting physiological reactions.

Intellectualization

A coping strategy that employs logic to avoid facing an internal conflict and the emotional turmoil it brings.