Suppose You Were to Observe an Increase in Real GDP

question 38

Multiple Choice

Suppose you were to observe an increase in real GDP with no change in the price level. If you held the long-run perspective of no trade-offs between inflation and unemployment, you could explain your observation only in terms of

• A) a simultaneous reduction in aggregate demand and potential GDP.
• B) an increase in aggregate demand alone.
• C) an increase in potential GDP with no change in aggregate demand.
• D) a simultaneous increase in aggregate demand and potential GDP.
• E) an increase in aggregate demand accompanied by a reduction in potential GDP.

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Definitions:

Traditional Hypnotherapy

A therapeutic technique that induces a trance-like state to increase focus and concentration, often used for healing or accessing forgotten memories.

Personal Experiences

are individual occurrences or events encountered in a person's life, shaping their perceptions, beliefs, and reactions to future situations.

Free Association

In psychoanalysis, the uncensored uttering of all thoughts that come to mind.

Unconscious Processes

Mental activities beyond conscious awareness that influence thoughts, feelings, and behaviors.