Consider the AD/AS Macro Model

question 110

Multiple Choice

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

• A)rise in real GDP but price level changes will be indeterminate.
• B)rise in real GDP and a rise in the price level.
• C)rise in real GDP and a fall in the price level.
• D)an indeterminate change in real GDP and a rise in the price level.
• E)an indeterminate change in real GDP and a fall in the price level.

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Definitions:

Sensory Thresholds

The minimum level of stimulus intensity required to be perceived or detected by the sensory systems.

The Pupil

The opening in the center of the iris of the eye, through which light enters.

White

A color perceived when all wavelengths of visible light are reflected by a surface, symbolically associated with purity and cleanliness.

Colored Part

The iris, which is the colored part of the eye surrounding the pupil and controlling the amount of light entering the eye.