Suppose Firms Are Currently Producing Beyond Their Normal Capacity

question 15

Multiple Choice

Suppose firms are currently producing beyond their normal capacity. A change in AD leads to a relatively

• A)large change in price level and a small change in real GDP.
• B)large change in price level and a large change in real GDP.
• C)no change in both price and output.
• D)small change in price level and a large change in real GDP.
• E)small change in price level and a small change in real GDP.

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Definitions:

Aldol Reaction

A type of organic reaction where an enol or an enolate ion reacts with a carbonyl compound to form a beta-hydroxyaldehyde or beta-hydroxyketone, followed by dehydration to give a conjugated enone.

Crossed Aldol Condensation

A chemical reaction involving two different carbonyl compounds to form a β-hydroxyketone or an α,β-unsaturated ketone under basic or acidic conditions.

Cinnamaldehyde

A yellow oily compound that gives cinnamon its flavor and odor, known chemically as a phenylpropanoid.

Claisen Product

The β-keto ester or β-diketone result obtained from a Claisen Condensation reaction.