Exhibit 14A-6 Aggregate Demand and Supply Model

question 58

Multiple Choice

Exhibit 14A-6 Aggregate demand and supply model

-Given the shift of the aggregate demand curve from AD₁ to AD₂ in Exhibit 14A-6,the real GDP and price level (CPI) in long-run equilibrium will be:

• A) $10 billion and 200.
• B) $4 billion and 150.
• C) $10 billion and 150.
• D) $10 billion and 100.

---

Definitions:

Reserved Powers

Denotes powers that are not explicitly delegated to the national government by the constitution, thus remaining with the state governments.

First Amendment

An amendment to the U.S. Constitution that guarantees freedoms concerning religion, expression, assembly, and the right to petition.

Absolute Rights

Fundamental rights that are universally recognized and protected, often considered inherent to human dignity and not subject to being taken away or abridged by laws.

Police Power

Power retained by each state to pass laws that protect the health, safety, and welfare of its citizens.