Refer to the Diagram

question 40

Multiple Choice

Refer to the diagram. If the aggregate supply curve shifted from AS₀ to AS₁ and the aggregate demand curve remains at AD₀, we could say that

• A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased.
• B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased.
• C) an increase in the amount of output supplied has occurred.
• D) aggregate supply has increased and the price level has risen to G.

---

Definitions:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and coordinating activity throughout the body.

Fearfulness

The emotional response or disposition to perceive and avoid dangerous or threatening situations, often characterized by anxiety or apprehension.

Vicious Dog

Refers to a dog that shows aggressive behavior towards people or other animals, often characterized by biting, growling, or attacking without provocation.

Sensation-seekers

Individuals who require more intense experiences and stimuli to feel fully engaged or satisfied.