If the Economy Is in Macroeconomic Equilibrium with a Vertical

question 73

Multiple Choice

If the economy is in macroeconomic equilibrium with a vertical AS curve, and then aggregate demand increases, we expect the AE function to shift to a

• A)higher level but then return to its original position as the price level rises.
• B)lower level, but then return to its original position as the price level rises.
• C)lower level and stay there.
• D)higher level and stay there.
• E)higher level, but then shift part of the way down to its original position as the price level rises.

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Definitions:

Pelvic Cavity

A body cavity that is bounded by the bones of the pelvis, containing reproductive organs, the urinary bladder, and the rectum.

Body Cavities

Defined spaces within the body that house organs and other structures, such as the thoracic, abdominal, and pelvic cavities.

Mesentery

A double layer of peritoneum that attaches the intestines to the wall of the abdomen, providing support and containing blood vessels, nerves, and lymphatics.

Serous Membrane

A thin membrane that lines certain internal cavities, producing serous fluid to reduce friction between internal organs.