If the Aggregate Demand Curve Shifts Rightward Following a Decrease

question 71

Multiple Choice

If the aggregate demand curve shifts rightward following a decrease in the cash rate, what can be concluded if the short- run aggregate supply curve is rather steep?

• A)There is significant unemployment and slack in the economy.
• B)There will be a significant increase in real GDP with little impact on the price level.
• C)There will be a significant increase in both real GDP and the price level.
• D)There will be little increase in real GDP but a significant increase in the price level.

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A therapy often applied to major depressive disorders that involves the use of electrical currents to generate short seizures in the brain.

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The process by which memories become stable in the brain; a critical phase after initial learning that involves the strengthening of the memory trace.