Use the Following to Answer Questions

question 151

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) Suppose the economy is initially at point A. Now suppose that there is an increase in government purchases. In the short-run,

• A) the price level rises to P_b and real GDP increases to Y_b.
• B) the price level rises to P_d.
• C) the aggregate supply curve shifts up to SRAS₂.
• D) the economy's potential output increases to Y_b.

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Definitions:

Mates

Refers to individuals paired for reproductive purposes or colloquially used to refer to friends or companions.

Socioeconomic Class

A division of society based on social and economic status.

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A measurement used to assess the distribution of body fat, calculated by dividing the circumference of one’s waist by the circumference of one’s hips, with implications for health and attractiveness.

Sexual Desire

The emotional and mental interest in sexual activities or objects, which can vary in intensity across different individuals and situations.