The Figure Above Shows an Economy's Aggregate Demand Curve and Aggregate

question 34

Multiple Choice

The figure above shows an economy's aggregate demand curve and aggregate supply curve.
-Suppose the shift from AD₀ to AD₁ and from AS₀ to AS₁ is the result of fiscal policy. If the effect on aggregate demand was larger than the figure above shows, as a result the price level would be ________ 110 and real GDP would be ________ $17 trillion.

• A) higher than; larger than
• B) smaller than; larger than
• C) equal to; larger than
• D) equal to; equal to
• E) smaller than; less than

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Definitions:

Research

A methodical exploration and review of materials and sources for the purpose of uncovering truths and forming new conclusions.

Personality

The assembly of various attributes or characteristics that constitute a person's unique character.

Psychoanalytic

A psychological theory and therapeutic method developed by Sigmund Freud focusing on unconscious motivations and conflicts as drivers of human behavior.

Inherited Influences

The impact of genes passed down from parents to offspring on the characteristics and behaviors of the offspring.