If the Price Level ____ as Real GDP Increases, the Multiplier

question 21

Multiple Choice

If the price level ____ as real GDP increases, the multiplier effects of any given change in aggregate demand are ____ than they would be if the price level remains constant.

• A) decreases; smaller
• B) rises; smaller
• C) does not change; smaller
• D) rises; larger
• E) does not change; larger

---

Definitions:

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, consisting of nerves and ganglia that connect the brain and spinal cord to the limbs and organs.

Autonomic Nervous System

is a control system that operates unconsciously and regulates bodily functions such as the heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

Somatic System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Autonomic System

A part of the peripheral nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.