If the Economy Is Operating in the Intermediate Range of the Aggregate

question 117

Multiple Choice

If the economy is operating in the intermediate range of the aggregate supply curve, then the greater the rate of growth of aggregate demand, the

• A)greater the resulting increase in the price level, the greater the rate of growth of output, and the greater the unemployment rate.
• B)greater the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate.
• C)less the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate.
• D)greater the resulting increase in the price level, the greater the rate of growth of output, and the lower the unemployment rate.

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Definitions:

Neurotransmitter

Chemical agents that facilitate communication between neurons across synapses in the nervous system.

Dopamine

A neurotransmitter associated with pleasure, movement, and attention in the brain.

Amphetamine

A potent central nervous system stimulant used in the treatment of attention deficit hyperactivity disorder (ADHD) and narcolepsy, and sometimes as a recreational drug.

Dopamine Hypothesis

A theory suggesting that the imbalance of dopamine levels in the brain plays a critical role in the development of schizophrenia and other psychotic disorders.