A Common Assumption Among Macroeconomists Is That When Real GDP

question 2

Multiple Choice

A common assumption among macroeconomists is that when real GDP exceeds potential output, factor prices adjust and the

• A)AS curve shifts to the right very rapidly.
• B)AD curve shifts to the left rapidly.
• C)AS curve shifts to the left only very slowly.
• D)AS curve shifts to the left fairly rapidly.
• E)none of the above-- the AS curve remains unchanged.

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Definitions:

Circadian Rhythm

A natural, internal process that regulates the sleep-wake cycle and repeats on each rotation of the Earth roughly every 24 hours.

Thigmomorphogenesis

The growth and developmental changes in plants that result from mechanical stimulation or touch.

Cytokinins

A class of plant hormones that promote cell division and growth, and delay senescence.

Cut Stem

Involves slicing or trimming the stem of a plant, often as a method of propagation or to remove dead or diseased portions.