Based on the Keynesian Theory of the Business Cycle, If

question 34

Multiple Choice

Based on the Keynesian theory of the business cycle, if the economy is at its full-employment equilibrium and aggregate demand increases then

• A) the price level and real GDP both increase.
• B) the price level rises but real GDP remains unchanged.
• C) the price level and real GDP both decrease.
• D) real GDP decreases and the price level remains unchanged.

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Definitions:

Spinal Column

The series of vertebrae extending from the skull to the lower back, encasing the spinal cord and providing structural support to the body.

Herniation

The abnormal protrusion of an organ or tissue through a structure or part that normally contains it.

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for pregnant women to prevent neural tube defects in infants.

Prenatal Vitamin

A supplement specially formulated to support the health of both pregnant women and their developing fetuses, typically containing folic acid, iron, calcium, and other vitamins and minerals.