Consider the AD/AS Macro Model

question 67

Multiple Choice

Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a

• A)rise in real GDP and a rise in the price level.
• B)rise in real GDP and a fall in the price level.
• C)an indeterminate change in real GDP and a fall in the price level.
• D)an indeterminate change in real GDP and a rise in the price level.
• E)rise in real GDP but price level changes will be indeterminate.

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Definitions:

Train of Thought

The progression of thoughts and ideas in an individual's mind, often leading to a specific conclusion or understanding.

Unconscious

A state in which a person is not awake and not aware of their surroundings or capable of conscious thought, often resulting from injury, illness, or anesthesia.

Reject

To refuse to accept, submit to, believe, or make use of.

Belonging Needs

Refers to the human emotional need to be an accepted member of a group, reflecting a desire for companionship and acceptance.