-Refer to Figure 15-7

question 168

Multiple Choice

-Refer to Figure 15-7.If the economy is currently at a price level of 120 and real GDP is $6.5 trillion,an increase in government purchases will,in the short run,

• A) shift the aggregate demand curve rightward,increasing both the price level and real GDP
• B) shift the aggregate demand curve leftward,decreasing both the price level and real GDP
• C) shift the aggregate supply curve upward,increasing the price level and decreasing real GDP
• D) shift the aggregate supply curve downward,decreasing the price level and increasing real GDP
• E) have no effect on aggregate demand because of crowding out

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Definitions:

Spinning Globe

A representation of the Earth that rotates on an axis, often used as a model to illustrate global geography and rotation.

Moon's Gravity

The gravitational force exerted by the Moon, affecting tides on Earth and the motion of spacecraft and objects on the Moon's surface.

Wave Action

The movement and force of water in the form of waves, which can shape coastlines and erode or deposit materials.

Wave Base

The depth at which the action of a wave in an ocean or lake no longer has an effect.