Exhibit 14-8 Aggregate Demand and Supply

question 71

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₅ to AD₄,real GDP will:

• A) not change, and the price level will fall from 170 to 100.
• B) not change, and the price level will fall from 140 to 100.
• C) fall from $8.0 to $6.0, and the price level will not change.
• D) fall from $8.0 to $6.0, and the price level will fall from 140 to 120.
• E) not change, and the price level will fall from 170 to 140.

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Definitions:

Prosocial Risk

Engaging in behaviors that are intended to benefit others, even when such actions may pose a risk to one's own well-being.

Sensation Seeking

The tendency to pursue sensory pleasure and excitement, often involving a higher risk of dangerous activities.

Anti-Social Risk

The potential for an individual to engage in behavior that is harmful or detrimental to society or social norms.

Disinhibition

The reduction of inhibition in behavior, often resulting in actions that are uncharacteristic or forbidden.