If the Economy's AS Curve Is Upward Sloping, a Negative

question 79

Multiple Choice

If the economy's AS curve is upward sloping, a negative shock to aggregate demand will result in

• A)an increase in both real GDP and prices.
• B)a decrease in both real GDP and prices.
• C)a decrease in prices but no change in real GDP.
• D)an increase in prices and no change in real GDP.
• E)an increase in real GDP and no change in prices.

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Definitions:

Take Care

A phrase used to express concern for someone's well-being, often used when parting.

Securely Attached

A term from attachment theory describing individuals who have a positive view of themselves and their relationships, leading to healthier and more stable interactions.

Strange Situation

An experimental procedure for assessing attachment, in which the child is allowed to explore an unfamiliar room with the mother present before the mother leaves for a few minutes, and then returns.

Moderately Distressed

A state of experiencing a medium level of stress, discomfort, or emotional upset, not extreme but noticeable and significant.