If the AD Curve Shifts Rightward, Then

question 18

Multiple Choice

If the AD curve shifts rightward, then

• A) both the price level and real GDP will increase.
• B) potential GDP increases.
• C) the price level will increase, but no change will occur in real GDP.
• D) both the price level and real GDP will decrease.
• E) the price level will not change, but real GDP will increase.

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Definitions:

Coordination Problem

The challenge of aligning decisions and actions among various parties to achieve a common goal.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Enterprise Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit, division, department, or an operating unit within an organization.

Innovation

The introduction of new products, ideas, or processes that improve methods or bring novel solutions to the market.