A Positive Demand Shock Will

question 68

Multiple Choice

A positive demand shock will

• A) shift the AD curve to the left.
• B) increase real GDP and the price level in the short run.
• C) decrease real GDP and the price level in the short run.
• D) increase real GDP and decrease the price level in the short run.
• E) decrease real GDP and increase the price level in the short run.

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Definitions:

Emotional Reactivity

The extent to which an individual responds emotionally to stimuli, events, or situations, which can vary greatly between individuals.

Intensity

The degree of strength, power, or force of something, often used in contexts such as sound, light, and emotions.

Fertilized Egg

The result of a sperm cell from a male and an egg cell from a female merging during conception, marking the beginning of a new organism's development.

Identical Twins

Twins that develop from a single fertilized egg, thereby sharing the same genetic material and often exhibiting remarkable similarities in appearance and traits.