If the AD Curve Shifts Rightward, Then

question 18

Multiple Choice

If the AD curve shifts rightward, then

• A) both the price level and real GDP will increase.
• B) potential GDP increases.
• C) the price level will increase, but no change will occur in real GDP.
• D) both the price level and real GDP will decrease.
• E) the price level will not change, but real GDP will increase.

---

Definitions:

Medical Insurance

A type of insurance coverage that pays for an insured individual's healthcare expenses.

Taxable Income

The amount of income used to determine how much the taxpayer owes in taxes, after deductions and exemptions.

Tax Freedom Day

The day of the year by which a nation as a whole has theoretically earned enough income to pay its taxes for the year.

1099 Forms

Tax documents used in the United States to report various types of income other than wages, salaries, and tips.