Given Aggregate Demand, a Decrease in Aggregate Supply Creates

question 89

Multiple Choice

Given aggregate demand, a decrease in aggregate supply creates:

• A) a higher price level and a higher GDP level.
• B) a lower price level and a higher GDP level.
• C) cost-push inflation.
• D) demand-pull inflation.

---

Definitions:

Distributive Control Systems

Systems where control elements are not centralized but distributed among various locations to provide localized control and monitoring.

One Controller

In control systems, having one controller implies a system design where a single controller unit manages the operations of multiple processes or devices.

Feedback Element

A component in a control system that provides real-time input based on the output, helping to adjust the system's behavior.