Since the End of World War II, the U

question 175

Multiple Choice

Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

• A) it is only necessary that long-run aggregate supply shifts right over time.
• B) it is only necessary that aggregate demand shifts right over time.
• C) both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must shift farther.
• D) None of the above cases would produce rising prices and growing real GDP over time.

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Definitions:

Plausible Claim

A statement that appears to be reasonable or believable based on available evidence.

Subverts Objectivity

Undermines or compromises the ability to judge or evaluate something in an unbiased, impartial manner.

Money

A medium of exchange that facilitates trade, typically issued by governments and recognized within an economic system.

Real World Example

An actual case or occurrence that illustrates a principle, theory, or phenomenon.