If the AD Curve Shifts Rightward While the AS Curve

question 54

Multiple Choice

If the AD curve shifts rightward while the AS curve and potential GDP don't change, then

• A) there will be no change in real GDP, so the economy is at the peak of the cycle.
• B) there will be no change in real GDP, so the economy is at the trough of the cycle.
• C) the economy will move from a peak into a recession.
• D) the expansion phase of the business cycle occurs.
• E) real GDP does not change.

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Definitions:

Dependent Variable

The outcome factor; the variable that may change in response to manipulations of the independent variable.

Independent Variable

In experimental research, the variable that is manipulated or changed to observe its effect on a dependent variable.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often characterized by physical symptoms.