Suppose the AD and SAS Curves Shift Upward by the Same

question 30

Multiple Choice

Suppose the AD and SAS curves shift upward by the same amount.Real GDP would ________ while the price level ________.

• A)remain unchanged,rises
• B)remain unchanged,remains unchanged
• C)remain unchanged,falls
• D)rise,remain unchanged
• E)fall,rises

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Definitions:

Monopoly Firms

Entities that are the sole providers of a product or service in a market, facing no competition.

Downward-Sloping

A term often used in economics to describe a line or curve on a graph that demonstrates a decrease in one variable as another increases.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.

Perfectly Elastic

Refers to a situation in which the quantity demanded or supplied changes infinitely in response to any change in price.