Exhibit 14-8 Aggregate Demand and Supply

question 65

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₂ to AD₁,real GDP will:

• A) fall from $4.0 to $3.0, and the price level will fall from 120 to 100.
• B) fall from $4.0 to $3.0, and the price level will not change.
• C) fall from $7.0 to $4.0, and the price level will not change.
• D) not change, and the price level will not change.
• E) fall from $4.0 to $3.0, and the price level will fall from 170 to 100.

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Definitions:

Tolerance

The process of becoming less responsive to a substance or stimulus after repeated exposure.

Withdrawal

A consequence of drug dependence that occurs when the drug is withheld, such that the person feels strong drug cravings and psychological and medical distress.

Cravings

Intense, urgent, or abnormal desires or longings, especially for food or substances.

Emotional Experiences

The internal personal feelings and reactions to events or thoughts, which can vary greatly in intensity and type.