A Decrease in the Aggregate Demand Curve Along the LRAS

question 81

Multiple Choice

A decrease in the aggregate demand curve along the LRAS curve, all other things unchanged, will generate ____ in potential real GDP and ____ in the price level.

• A) an increase; no change
• B) a decrease; no change
• C) no change; an increase
• D) no change; a decrease

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Definitions:

Virgin and Child

A common subject in Christian art depicting Mary, the mother of Jesus, holding the infant Jesus, symbolizing maternal love and the importance of the Christ child.

Chartres Cathedral

A historic French cathedral renowned for its Gothic architecture, stained glass windows, and status as a major pilgrimage destination.

Early Christian

Pertains to the period and art forms associated with Christians and the Christian Church from its beginning until the end of the Roman Empire.

Theotokos

Greek, “she who bore God.” The Virgin Mary, the mother of Jesus.