Consider the AD/AS Model

question 29

Multiple Choice

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

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

---

Definitions:

Environmental Factors

External elements, including physical, biological, and chemical factors, that can influence individuals' health and behavior.

Sickle-cell Carriers

Individuals who carry one copy of the mutated gene responsible for sickle-cell disease but generally do not show symptoms.

Cultural Factors

Elements that arise from the shared beliefs, values, norms, and practices of a group of people that influence behavior and interactions.