-Refer to Figure 15-7

question 47

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 taxes 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:

Floodplain

A flat area of land adjacent to a river or stream that experiences occasional or regular flooding.

Flooded

Describes areas that have been overwhelmed with water, often due to excessive rainfall, river overflow, or dam failure.

Terrace

A relatively level or gently inclined surface or bench bounded on one edge by a steeper descending slope.

Entrenched Meanders

Deeply incised meanders in a river or stream that retain their winding course because the land elevation change has been rapid compared to the lateral motion of the river.