In the Simple Keynesian Model,an Increase in Aggregate Demand Leads

question 15

Multiple Choice

In the simple Keynesian model,an increase in aggregate demand leads to an increase in

• A) Real GDP and the price level.
• B) the price level and no change in Real GDP for levels of Real GDP below Natural Real GDP.
• C) the price level and a decrease in Real GDP.
• D) Real GDP and no change in the price level for levels of Real GDP below Natural Real GDP.
• E) There is not enough information to answer the question.

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system associated with the voluntary control of body movements through the action of skeletal muscles.

Dissociative Amnesia

A disorder characterized by gaps in memory for personal history, sometimes due to traumatic events or extreme stress.

Traumatic Episode

An incident or period in life that causes severe psychological distress and may lead to PTSD or other stress-related disorders.

Dissociative Disorders

A group of disorders in which some parts of one’s memory or identity seem to be dissociated, or separated, from other parts of one’s memory or identity.