The Figure Below Shows the Aggregate Demand and Supply Curves

question 28

Multiple Choice

The figure below shows the aggregate demand and supply curves for the U.S. The figure given below shows that from the beginning of period 1 to the end of period 2:

• A) real GDP decreased and then increased.
• B) real GDP increased and then decreased.
• C) real GDP fell from $10,000 to $6,000.
• D) real GDP rose from $6,000 to $10,000.
• E) the inflation rate fell from 4 percent to 1 percent.

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Definitions:

Tyrannical

Exercising power in a cruel or arbitrary way; often associated with dictatorial leadership.

Stanley Milgram

Stanley Milgram was a psychologist best known for his landmark experiments on obedience to authority figures, conducted in the 1960s.

Obedience

The act of following orders or directions from an authority figure without question.

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