Which of the Following Is Most Likely to Happen If

question 120

Multiple Choice

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium) shifts to the left?

• A)The equilibrium real GDP will decrease.
• B)The equilibrium price level in the economy will increase.
• C)The aggregate supply curve will shift rightward.
• D)The aggregate supply curve will shift leftward.
• E)The economy will experience an expansion.

Comprehend the role and impact of automatic stabilizers in smoothing out economic cycles.

Understand the implications of government borrowing and the crowding-out effect in fiscal policy.

Appreciate the distinction between fiscal policy and monetary policy, including their goals and means.

Recognize the purpose and challenges associated with balanced budget amendments.

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Definitions:

Organizational Layers

The levels of management in an organization.