Suppose the Government Increases Aggregate Demand to a Level That

question 295

Multiple Choice

Suppose the government increases aggregate demand to a level that increases GDP above its long-run equilibrium level. What sequence of events would follow?

• A) prices rise; GDP increases; workers demand higher wages; short-run aggregate supply shifts to the left; GDP drops
• B) prices fall; workers receive lower wages; short-run aggregate supply shifts to the right; GDP rises
• C) prices rise; GDP increases; workers demand higher wages; long-run aggregate supply shifts to the left; GDP falls
• D) prices fall; workers receive lower wages; aggregate supply shifts to the right; GDP rises

---

Definitions:

Urinary Elimination

The process by which the kidneys filter waste from the blood and transport urine to the bladder for excretion.

Ileal Conduit

A surgical procedure to create a pathway for urine to exit the body through the abdominal wall after removal of the bladder.

Diuretic

A substance that promotes the increased production of urine, often used in medicine to manage fluid balance and reduce swelling.

Renal Capillaries

Tiny blood vessels in the kidneys where exchange of substances between blood and urine takes place.