An Increase in the Aggregate Price Level, P, Will Most

question 79

Multiple Choice

An increase in the aggregate price level, P, will most likely have which of the following effects?

• A) A rightward shift in the IS curve.
• B) A leftward shift in the IS curve.
• C) An upward shift in the LM curve.
• D) A downward shift in the LM curve.
• E) A downward shift in the IS curve and an upward shift in the LM curve.

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Definitions:

Obesity

A medical condition characterized by excess body fat that increases the risk of health problems.

Mediastinum

The medial compartment of the thoracic cavity, situated between the lungs, containing the heart, thymus, esophagus, trachea, and major blood vessels.

Esophagus

A muscular tube that conveys food and liquids from the mouth to the stomach.

Thoracic Cavity

A large body cavity in humans and many animals that houses the lungs and heart, among other organs, located between the neck and the abdomen.