If Left Alone, the Recession Experienced by an Economy Will

question 139

Multiple Choice

If left alone, the recession experienced by an economy will cause the short- run

• A) aggregate demand curve to shift downward until the equilibrium GDP is back at full employment.
• B) aggregate supply curve to shift upward until the equilibrium GDP is back at full employment.
• C) aggregate supply curve to shift downward until the equilibrium GDP is back at full employment.
• D) aggregate demand curve to shift upward until the equilibrium GDP is back at full employment.

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Definitions:

Refractory Period

In physiological context, a period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Neuron

A cell of the nervous system that is specialized to transmit information throughout the body.

Resting Pause

A brief period of rest or inactivity, especially used in the context of physical exercise or mental relaxation.

Sodium/Potassium Pumps

Cellular mechanisms that move sodium and potassium ions across the cell membrane to maintain appropriate concentration levels inside and outside the cell.