-Refer to the Above Figure

question 256

Multiple Choice

-Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD₂. In the short run

• A)real GDP will be Y₁, and the price level will be P₁.
• B)real GDP will be Y₂, and the price level will be P₂.
• C)real GDP will be Y₁, and the price level will be above P₂.
• D)real GDP will be between Y₁ and Y₂, and the price level will be between P₁ and P₂.

---

Definitions:

Brainstem

The part of the brain that connects the cerebrum with the spinal cord and controls vital functions such as breathing and heart rate.

Amygdala

A structure within the brain that is involved in processing emotions, particularly fear and pleasure, and plays a key role in memory, decision-making, and emotional reactions.

Medial Forebrain Bundle

A neural pathway in the brain involving the transmission of dopamine and implicated in the regulation of pleasure and reward.

Reticular Formation

The reticular formation is a complex network of nerve pathways in the brainstem involved in consciousness, sleep-wake cycles, and mediating overall levels of arousal.