Holding the Level of Prices Fixed Implies That a Given

question 43

Multiple Choice

Holding the level of prices fixed implies that a given increase in aggregate demand

• A)will have a smaller effect on real GDP than would be the case if prices were more flexible.
• B)will have a larger effect on real GDP than would be the case if prices were more flexible.
• C)has the same effect on real GDP as when prices are more flexible.
• D)has a smaller effect on nominal GDP than when prices are more flexible.

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Definitions:

Crocodilians

A group of large aquatic reptiles, including alligators, crocodiles, caimans, and gharials.

Modern Reptiles

Current existing species of the class Reptilia, including snakes, lizards, turtles, crocodiles, and alligators, which are cold-blooded and lay eggs.

Hominin Species

Members of the taxonomic group that includes modern humans and all their ancestors, recognized by bipedalism and larger brain sizes relative to body.

Upright Vertebral Column

A characteristic feature of vertebrates including humans, enabling an upright posture and supporting the body's weight.