An Economy Is at a Full-Employment Equilibrium, and Then the Aggregate

question 30

Multiple Choice

An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________.

• A) falls; increases
• B) falls; does not change
• C) falls; decreases
• D) rises; decreases
• E) rises; increases

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Definitions:

Base Metabolic Rate

The frequency with which the body utilizes energy while not active, aiming to uphold important functions like oxygen intake and maintaining internal warmth.

Serving Size

The standardized amount of food that is typically consumed in one sitting, often used for nutritional labeling and guidelines.

Social Facilitation

The phenomenon where an individual's performance is improved when performing in the presence of others compared to when performing alone.

Neophobia

The fear or strong dislike of anything new or unfamiliar, commonly observed in food selection and unfamiliar environments.