A Study of the U

question 51

Multiple Choice

A study of the U.S.price level and real GDP from 1972 to 2007 reveals a clear upward march toward higher prices and greater output.What explains this?

• A)Both the aggregate demand curve and the aggregate supply curve have shifted to the left year after year.
• B)Both the aggregate demand curve and the aggregate supply curve have shifted to the right year after year.
• C)The aggregate supply curve has shifted to the right, while the aggregate demand curve has shifted to the left.
• D)The aggregate supply curve has shifted to the left, while the aggregate demand curve has shifted to the right.

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Definitions:

Efficient

The state of achieving a maximum output from given resources, with minimal waste or inefficiency.

Normative Statement

Prescriptive assertions that express judgments about whether a situation is desirable or undesirable, reflecting values rather than facts.

Positive Statement

A factual claim about how the world actually works, verifiable by observation or experience.

Production Possibilities Frontier

An illustration representing the peak production capabilities for two different items, utilizing a specific combination of resources and factors.