Consider the AD/AS Model After Factor Prices Have Fully Adjusted

question 52

Multiple Choice

Consider the AD/AS model after factor prices have fully adjusted to output gaps. An increase in the level of potential output, with aggregate demand constant, will

• A)decrease real GDP and the price level.
• B)decrease real GDP and raise the price level.
• C)increase real GDP and lower the price level.
• D)affect only the price level.
• E)affect only the level of real GDP.

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Definitions:

Sexual Dimorphism

The distinction between two sexes within the same species, expressed through differences in physical characteristics not directly related to reproductive organs.

Gender Dysphoria

The distress or discomfort that occurs when there is a discrepancy between an individual’s gender identity and the sex they were assigned at birth.

Biological

Pertaining to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.

Sex

A biological classification based on physical differences in genetic composition, reproductive anatomy, and function.