Exhibit 14-8 Aggregate Demand and Supply

question 85

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

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

• A) not change, and the price level will rise from 120 to 170.
• B) increase from $7.0 to $8.0, and the price level will rise from 120 to 170.
• C) not change, and the price level will rise from 140 to 170.
• D) increase from $4.0 to $7.0, and the price level will not change.
• E) not change, and the price level will rise from 100 to 170.

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Definitions:

Interior

Relating to the inner or indoor parts of a place, building, or object; can also refer to the inland regions of a country or area.

Continents

Large, continuous areas of land on Earth, traditionally numbered as seven major divisions.

Rain Shadow Effect

A meteorological phenomenon where mountains block the passage of rain-producing weather systems, creating a dry area on the leeward side.

Vegetation

Plants in general, or the plant life of a particular area, ecosystem, or period.