Figure 5-2 ​

question 32

Multiple Choice

Figure 5-2
​
-In Figure 5-2, an increase in government spending would cause

• A)an outward shift in the aggregate supply curve and an increase in the price level.
• B)an outward shift in the aggregate demand curve and an increase in the price level.
• C)an inward shift of the aggregate demand curve and an increase in the price level.
• D)an inward shift of the aggregate demand curve and a decrease in the price level.

---

Definitions:

Terranes

Geologically distinct regions that may have been brought together by past tectonic processes.

Linear Island Chain

A series of islands aligned in a straight or nearly straight line, often created by volcanic activity along a tectonic plate boundary or hotspot.

Hot Spots

Regions in the Earth's mantle that are exceptionally hot, causing volcanic activity at the Earth's surface, independent of tectonic plate boundaries.

Volcanically Active

Describes a volcano or area that is currently erupting or shows signs of possible eruptions in the future.