Consider the Basic AD/AS Model

question 85

Multiple Choice

Consider the basic AD/AS model.A rise in an input price like the wage rate would be expected to create a new macroeconomic equilibrium,which in comparison to the original equilibrium,has a price level that is

• A)higher and a real GDP that is higher.
• B)higher and a real GDP that is lower.
• C)higher and a real GDP that is the same.
• D)lower and a real GDP that is higher.
• E)lower and a real GDP that is lower.

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Definitions:

Gene Pool

The total collection of different genes in an interbreeding population.

Organism's Niche

The role or function of an organism or species within an ecosystem, including its habitat, resource use, and interaction with other species.

Coevolution

The process by which two or more species reciprocally affect each other's evolution through natural selection.