If Real GDP Is Less Than Potential GDP, Then the _{--------------------}and

question 10

Multiple Choice

If real GDP is less than potential GDP, then the _{--------------------}and the price level _{--------------------}

• A)aggregate supply curve shifts rightward; falls
• B)aggregate demand curve shifts leftward; rises
• C)aggregate demand curve shifts rightward; falls
• D)amount of potential GDP increases; falls
• E)aggregate supply curve shifts leftward; rises

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Definitions:

Civil Remedy

Legal means through which a court enforces a right, imposes a penalty, or makes another court order to impose its will.

Legal Drinking Age

The minimum age at which an individual is legally allowed to purchase and consume alcoholic beverages, which varies by jurisdiction.

Federal Funds

Central bank balances held by banks at the Federal Reserve which are available for lending to other banks overnight to meet reserve requirements.

State Highways

Roads managed by state governments, forming part of a state's transportation network, often connecting cities and towns.