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.

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Definitions:

Gentrified

The process by which higher-income individuals move into, renovate, and revitalize urban neighborhoods, often displacing lower-income residents.

Demographic Transition Theory

A theory that explains how countries move from high to low birth and death rates as they progress from pre-industrial to industrial economic systems.

Fertility Rates

The typical amount of children a woman gives birth to throughout her life in a given population.

Mortality Rates

A measure of the number of deaths in a given population, scaled to the size of that population, per unit of time.