Consider the Following News Headline: "Governments Plan Massive Hospital Construction

question 44

Multiple Choice

Consider the following news headline: "Governments plan massive hospital construction programs across the country." Choose the statement below that best describes the likely macroeconomic effects.

• A)the AD and AS curves both shift to the right; the effect on the price level is indeterminate and real GDP rises
• B)the AD curve shifts to the left and the AS curve shifts to the right; the price level falls and the effect on real GDP is indeterminate
• C)the AD curve shifts to the right; the price level rises and real GDP rises
• D)the AD curve shifts to the right and the AS curve shifts to the left; the price level rises and the effect on real GDP is indeterminate
• E)the AD curve shifts to the left; the price level falls and real GDP falls

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Definitions:

Corporatist Society

A social and political system in which interest groups, such as businesses and trade unions, are integrated into the government structure, influencing policies and decisions.

Economic Downturns

Periods when the economy as a whole is in decline, characterized by reduced industrial production, trade, consumer spending, and employment rates.

Business Leaders

Individuals who hold positions of power and influence within businesses and corporations, guiding strategic direction, growth, and operational decision-making.