A Leftward Shift in the AD Curve Accompanied by a Leftward

question 70

Multiple Choice

A leftward shift in the AD curve accompanied by a leftward shift of the AS curve will

• A)increase the price level but have an uncertain effect on GDP.
• B)reduce the price level but have an uncertain effect on GDP.
• C)increase GDP but have an uncertain effect on the price level.
• D)reduce GDP but have an uncertain effect on the price level.
• E)increase both GDP and the price level.

Understand the application of the weak axiom of revealed preference in decision making.

Grasp the relationship between consumption ratios and price changes.

Analyze the effect of nonlabor income on leisure and labor decisions.

Understand the ethical dilemmas social workers face when dealing with confidentiality issues, particularly in cases involving substance abuse.

---

Definitions:

Multiplier

In economics, the multiplier effect refers to the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Government Spending

Expenditures by government agencies on goods and services that are intended to improve the nation's economy and the welfare of its citizens.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific period of time.