-In the Above Figure, the Aggregate Demand Curve Is AD₂

question 346

Multiple Choice

-In the above figure, the aggregate demand curve is AD₂, so the short- run equilibrium level of real GDP is

• A) between $12 and $12.5 trillion.
• B) $12.5 trillion.
• C) $12 trillion.
• D) None of the above answers is correct.

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Definitions:

Tactile Sensory Memory

The brief retention of sensory information related to touch, part of the sensory memory that allows for the preservation of tactile impressions for a short time after the actual stimulus has ended.

Automatic Encoding

Tendency of certain kinds of information to enter long-term memory with little or no effortful encoding.

Long-term Memory

The phase of memory that is capable of storing information for extended periods of time, ranging from minutes to a lifetime.

Effort

is the use of physical or mental energy to accomplish a task or goal.