- 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:

Internal Cavity

A hollow space within the body that houses organs, such as the thoracic or abdominal cavities.

Embryonic Disc

A flat, circular layer of cells in the early embryo from which the body of the organism begins to develop.

Blastocyst

A structure formed in the early development of mammals, consisting of an inner cell mass and an outer layer of trophoblast cells, which implants into the uterine wall.

Pronuclei

The nuclei of the sperm and egg before they fuse in fertilization, each containing a single set of chromosomes from the respective parent.