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

---

Definitions:

Certificates and Diplomas

Formal documents issued by educational institutions or professional organizations certifying completion of a course of study or qualification.

Stand and Deliver

A phrase often used to demand that someone stops and submits to the speaker's demands, popularly known due to its historical context in robbery but also the title of a film about an inspiring high school teacher.

Self-Fulfilling Prophecies

A phenomenon where a belief or expectation, correct or incorrect, affects a person's behavior in such a way that it influences the outcome to conform to the prediction.

Educational Failure

The inability to achieve a desired or required level of academic performance or the non-achievement of educational goals.