-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:

Zygote

The initial cell formed when a new organism is produced by the union of sperm and egg cells.

Reflex Responses

Involuntary, automatic actions or movements the body makes in response to specific stimuli, crucial for survival and functioning.

Native Language

The first language a person learns, typically spoken in the home during childhood.

Y Chromosome

A sex chromosome typically associated with male biological characteristics in humans and other mammals, playing a crucial role in sex determination and genetic inheritance.