In the Aggregate Demand/aggregate Supply Model, When the Output of an Economy

question 105

Multiple Choice

In the aggregate demand/aggregate supply model, when the output of an economy is less than its long-run potential, the economy will experience

• A) declining real wages and interest rates that will stimulate employment and real output.
• B) rising interest rates that will stimulate aggregate demand and restore full employment.
• C) a budget surplus that will stimulate demand and, thereby, help restore full employment.
• D) rising real wages and real interest rates that will restore equilibrium at a higher price level.

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Definitions:

Naive T Cells

Immature T cells that have not yet encountered their specific antigen and thus have not been activated.

AIDS

Acquired Immunodeficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV), which damages the immune system, undermining the body's ability to fight infections and diseases.

Sexual Intercourse

The physical act between two individuals that involves genital contact and the exchange of bodily fluids, often resulting in reproduction in sexually reproducing species.

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects such as bacteria and viruses.