Over the Horizontal Range of the Economy's AS Curve (Assuming

question 31

Multiple Choice

Over the horizontal range of the economy's AS curve (assuming such a range exists) , a rightward shift of the AD curve will result in

• A)a decrease in both real GDP and prices.
• B)an increase in both real GDP and prices.
• C)an increase in real GDP and no change in prices.
• D)a decrease in real GDP but no change in prices.
• E)an increase in prices and no change in real GDP.

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Definitions:

Proactive Interference

A phenomenon where older memories hinder the recall of newer memories.

Retroactive Interference

A cognitive event where recent information hampers the retrieval of older information that was learned earlier.

Encoding Specificity

The principle that the recall of information is improved when the contexts present at encoding and retrieval are similar.

Childhood Events

Significant occurrences during one's early years that can have profound effects on an individual's development and personality.