-Refer to Figure 15-8

question 164

Multiple Choice

-Refer to Figure 15-8.Suppose that the economy is at the full-employment level of output of $6 trillion when a demand shock increases real GDP to $6.5 trillion.In the long run,we would expect the

• A) economy to remain at the new level of output of $6.5 trillion
• B) aggregate demand curve to shift leftward until the economy returns to full employment at the original price level
• C) aggregate supply curve to shift upward until the economy returns to full employment,but at a higher price level
• D) aggregate supply curve to shift downward until the price level returns to its original level
• E) aggregate demand curve to shift further to right as the multiplier effect occurs.

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Definitions:

Antidepressant Medication

A class of drugs used primarily to treat depression, but also used for anxiety, pain, and certain other mental health conditions, by altering the balance of neurotransmitters in the brain.

Improvement

The process of making something better or more effective through corrective measures or enhancements.

Different Medication

A term indicating a drug or medicine that is distinct from another in composition, form, or prescribed use.

Notice Improvement

The recognition or observation of enhancement, advancement, or betterment in a situation, condition, or process.