Assume That the AD Curve Is Held Constant and Short-Run

question 11

Multiple Choice

Assume that the AD curve is held constant and short-run aggregate supply decreases.The result is a(n) :

• A)increase in both equilibrium real GDP and the price level.
• B)decrease in equilibrium real GDP and an increase in the price level.
• C)decrease in both equilibrium real GDP and the price level.
• D)decrease in equilibrium real GDP, while the price level remains fixed.
• E)increase in the price level, while equilibrium real GDP remains fixed.

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The study of how people process, store, and apply information about others and social situations; it involves understanding how we think about ourselves and others in the social world.

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