Exhibit 14-8 Aggregate Demand and Supply

question 185

Multiple Choice

Exhibit 14-8 Aggregate demand and supply

-In Exhibit 14-8,if aggregate demand shifts from AD₁ to AD₂,

• A) real GDP will increase from $3.0 to $7.0, and the price level will remain the same.
• B) real GDP will increase from $3.0 to $4.0, and the price level will remain the same.
• C) real GDP and the price level will both remain the same.
• D) real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.

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Definitions:

Sternberg

Sternberg refers to Robert Sternberg, an influential psychologist known for his theories on intelligence, creativity, love, and wisdom.

Religion

A set of beliefs, practices, and moral codes related to the worship of or belief in a supernatural power or powers considered to be divine or sacred.

Cognitive Dissonance

The psychological unease felt when an individual simultaneously possesses conflicting beliefs, ideas, or values.

Dissonance

A state of conflict or inconsistency between one's beliefs, attitudes, or actions, often leading to discomfort and change.