Consider the Basic AD/AS Macro Model

question 56

Multiple Choice

Consider the basic AD/AS macro model.A rise in an input price like the price of oil would be expected to cause a new macroeconomic equilibrium in which the price level

• A)and real GDP are higher than in the initial equilibrium.
• B)and real GDP are lower than in the initial equilibrium.
• C)is lower and real GDP higher than in the initial equilibrium.
• D)is higher and real GDP remained the same as in the initial equilibrium.
• E)is higher and real GDP lower than in the initial equilibrium.

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Definitions:

Concentration

Concentration refers to the amount of a substance per defined space; it is a measure of how much of a solute is dissolved in a specific amount of solvent.

Exothermic

Describes a chemical reaction that releases heat into its surroundings.

ΔS°

The standard entropy change of a system, measuring the change in disorder or randomness during a chemical process under standard conditions.

ΔH°

Denotes the standard enthalpy change of a reaction, measured under standard conditions (1 atm, 298.15 K).