The Figure Above Shows an Economy's Aggregate Demand Curve and Aggregate

question 81

Multiple Choice

The figure above shows an economy's aggregate demand curve and aggregate supply curve.
-Suppose the shift from AD₀ to AD₁ and from AS₀ to AS₁ is the result of fiscal policy.If the effect on aggregate demand was larger than the figure above shows,as a result the price level would be ________ 110 and real GDP would be ________ $17 trillion.

• A)higher than;larger than
• B)smaller than;larger than
• C)equal to;larger than
• D)equal to;equal to
• E)smaller than;less than

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Definitions:

Lexical Hypothesis

Traits important for survival and reproduction are embedded in our language, with the most important traits represented by the largest number of words.

Embedded

The state of being firmly and deeply ingrained or fixed within a surrounding whole.

Lexical Approach

A method in personality psychology that proposes that key personality traits can be identified by analyzing the language people use to describe themselves and others.

Gordon Allport

An American psychologist known for his work in personality theory and for emphasizing the importance of individuality and personal growth.