-The Figure Above Illustrates the Aggregate Demand, Short-Run Aggregate Supply

question 246

Multiple Choice

-The figure above illustrates the aggregate demand, short-run aggregate supply, and long-run aggregate supply in Lotus Land. The economy is currently at point D and the government decreases its taxes. The economy will move to ________. The price level will ________, and the change in real GDP will be ________ the increase in aggregate demand.

• A) point A; fall; less than
• B) point D; rise; less than
• C) point C; rise; less than
• D) point B; remain constant; the same as

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Definitions:

Natural Selection

The process by which individuals with characteristics suited to their environment are more likely to survive and reproduce, thereby influencing the genetic makeup of populations.

Linkage Disequilibrium

The non-random association of alleles at two or more loci, not necessarily on the same chromosome, that can arise from historical mutations, genetic drift, or population structure.

Recombination

A genetic process resulting in a mixture of parental characteristics in offspring due to the exchange of genetic material between chromosomes during sexual reproduction.

Phenotypic Plasticity

The ability of an organism to change its phenotype in response to changes in the environment.