- If Potential GDP Increases, Then in the Figure Above the the Potential

question 114

Multiple Choice

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If potential GDP increases, then in the figure above the potential GDP line_{--------------------} , and the aggregate supply curve_{--------------------} .

• A)shifts rightward; does not shift
• B)shifts rightward; shifts leftward
• C)does not shift; does not shift
• D)does not shift; shifts rightward
• E)shifts rightward; shifts rightward

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Definitions:

Functional Fixedness

A problem-solving phenomenon in which people have difficulty in seeing alternate uses for common objects.

String Problem

A type of problem-solving task that involves finding solutions or patterns within sequences of characters or symbols.

Pendulum

A weight suspended from a pivot so that it can swing freely, often used in clocks for regulating time.

Critical Thinking

A type of thinking that involves careful examination of assumptions and evidence and that is purposeful and deliberate.