- Suppose the Shift from AD0 to AD1 and from AS0

question 26

Multiple Choice

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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. If the effect on aggregate demand was larger than the figure above shows, as a result the price level would be_{--------------------}
110 and real GDP would be _{--------------------}$14 trillion.

• A)equal to; larger than
• B)higher than; larger than
• C)smaller than; less than
• D)smaller than; larger than
• E)equal to; equal to

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Definitions:

Cents

A monetary unit in various countries, equal to one-hundredth of a base unit of currency, like the dollar in the United States.

Aluminum Tubing

Hollow cylindrical pieces made of aluminum used in various applications, including construction and manufacturing.

Feet

A unit of length in the imperial and US customary systems of measurement, equal to 12 inches or 0.3048 meters.

Costs

Expenses incurred in the process of producing or acquiring goods and services.