Which of the Following Could Explain Why There Is an Increase

question 47

Multiple Choice

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?

• A)SRAS shifted to the right by more than LRAS.
• B)AD shifted to the right by more than SRAS.
• C)AD shifted to the right by less than SRAS.
• D)AD did not shift and SRAS shifted to the left.

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Definitions:

Naval Forces

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McCulloch V. Maryland

A landmark Supreme Court case in 1819 that established the principle of national supremacy and the constitutionality of a federal bank.

Necessary And Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws necessary and proper for carrying out its enumerated powers.