Consider a Simple Macro Model with a Given Price Level

question 72

Multiple Choice

Consider a simple macro model with a given price level and demand- determined output. An exogenous change in the domestic price level changes equilibrium real GDP

• A)in the same direction.
• B)by a lesser amount in either direction.
• C)by the same amount in the same direction.
• D)in the opposite direction.
• E)by the same amount in the opposite direction.

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Definitions:

Temperate Zone

A climate zone lying between the tropical and polar zones, characterized by moderate temperatures.

Protective Covering

A material or structure that provides defense against external environmental hazards.

Bark

Informal term for all living and dead tissues outside the ring of vascular cambium in woody plants.

Secondary Phloem

The plant's vascular system that moves sugars and other substances produced during metabolism from the leaves downward.