When Aggregate Demand Increases

question 42

Multiple Choice

When aggregate demand increases,

• A)the price level is likely to rise as GDP rises.
• B)the price level is likely to fall as GDP rises.
• C)aggregate supply will shift to the right.
• D)aggregate supply will shift to the left.

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Definitions:

Myelin Sheath

The fatty layer that surrounds and insulates the axons of some neurons, which enables faster transmission of electrical impulses.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another neuron, muscle cell, or gland cell.

Synaptic Vesicle

Membrane-bound sacs in the presynaptic terminals of neurons that store neurotransmitters, which are released into the synaptic cleft in response to an action potential.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body.