Use the Figure Below to Answer the Following Questions

question 20

Multiple Choice

Use the figure below to answer the following questions.

Figure 28.1.3
-Refer to Figure 28.1.3.Assume that the figure illustrates an economy initially in equilibrium at the intersection of the SAS0 curve and the AD0 curve.If the aggregate demand curve is expected to shift to AD1 but remains at AD0,the new equilibrium real GDP is ________ and the new equilibrium price level is ________.

• A)$380 billion; 100
• B)$500 billion; 150
• C)$500 billion; 100
• D)$620 billion; 125
• E)$380 billion; 125

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Definitions:

Oral Stage

The first phase in Freud's psychosexual development theory, where a child's pleasure centers are focused on the mouth area.

Phallic Stage

One of Freud's psychosexual development stages, occurring from about age 3 to 6, where the libido's focus is on the genital area.

Latency Stage

Refers to a period in Freud's psychosexual development theory, occurring approximately between the ages of 5 and puberty, characterized by a decrease in sexual interests and an increase in developing social and intellectual skills.

Tabula Rasa

The idea that individuals are born without built-in mental content, and all knowledge comes from experience or perception.