Figure 14-4 -In Figure 14-4, an Unanticipated Shift to a More Restrictive

question 37

Multiple Choice

Figure 14-4
-In Figure 14-4, an unanticipated shift to a more restrictive monetary policy will shift

• A)AD to the right and temporarily increase real GDP.
• B)AD to the left and temporarily reduce real GDP.
• C)AD to the right and SRAS to the left and lead to higher prices (inflation).
• D)both AD and SRAS to the right and lead to an increase in real GDP.

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Definitions:

Waiver

A waiver is the voluntary relinquishment or surrender of some known right or privilege.

Statute of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

Proximate Cause

A principle in law that denotes the primary cause of an injury, used to establish the direct link between an act and the injury suffered.

Standard of Care

The degree of prudence, attention, and caution expected of a reasonable person in a specific situation, often used as a legal benchmark.