If Real GDP Is Less Than Potential GDP,then the ________

question 202

Multiple Choice

If real GDP is less than potential GDP,then the ________ and the price level ________.

• A)aggregate demand curve shifts leftward;rises
• B)aggregate demand curve shifts rightward;falls
• C)aggregate supply curve shifts leftward;rises
• D)aggregate supply curve shifts rightward;falls
• E)amount of potential GDP increases;falls

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Definitions:

Lava Flow

The movement of lava as it pours out and spreads over the land following a volcanic eruption.

Angular Unconformity

An unconformity (ancient erosion surface) in which the older, underlying strata dip more steeply or at a different angle than the younger, overlying strata.

Landscape Surface

The visible top layer of the earth's crust, including its physical features such as mountains, valleys, and plains.

Lithification

The conversion of unconsolidated sediment or volcanic ash into a coherent, solid rock, involving processes such as compaction and cementation.