​ Exhibit 10A-1 Aggregate Demand and Supply Model

question 9

Multiple Choice

​ Exhibit 10A-1 Aggregate demand and supply model

Beginning from long-run equilibrium at point E₁ in Exhibit 10A-1, the aggregate demand curve shifts to AD₂ . The real GDP and price level (CPI) in short-run equilibrium will be:

• A) $12 billion and 200.
• B) $8 billion and 250.
• C) $8 billion and 150.
• D) $12 billion and 250.

---

Definitions:

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and is a facet of emotional intelligence.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, decision making, and regulating social behavior.

Basal Ganglia

A group of structures in the brain involved in the control of voluntary motor movements, procedural learning, habit learning, eye movements, cognition, and emotion.

Limbic System

The Limbic System is a complex set of structures in the brain that deals with emotions and memory. It plays a key role in emotional responses and formation of memories.