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:

Germination

The process by which a plant grows from a seed or similar structure, often requiring specific environmental conditions to initiate.

Oxygen Availability

The presence and accessibility of oxygen in an environment, critical for the respiration processes of aerobic organisms.

Endosperm

Nutritive tissue in the seeds of flowering plants.

Nutrition

The process of providing or obtaining the food necessary for health and growth, including the study of nutrients and how the body utilizes them.