If the Economy's AS Curve Is Very Steep and There

question 53

Multiple Choice

If the economy's AS curve is very steep and there is a negative aggregate demand shock, the result will be

• A)an increase in both the price level and national income.
• B)a decrease in the price level and an increase in national income.
• C)a decrease in the price level with almost no change in national income.
• D)no change in either price level or output.
• E)an increase in the price level and a decrease in national income.

Identify the fundamental roles of government in safeguarding private property and enforcing contracts.

Understand the production and overproduction of external benefits in a free market system.

Distinguish between public goods, private goods, and the characteristics of each.

Define and identify external benefits and their impact on third parties.

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Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out nerve signals.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Autonomic

Pertaining to the autonomic nervous system, which controls involuntary body functions like heart rate and digestion.

Somatic Nervous Systems

A part of the peripheral nervous system associated with voluntary control of body movements via the use of skeletal muscles.