An Increase in the Amount of Physical Capital Will Cause

question 234

Multiple Choice

An increase in the amount of physical capital will cause

• A) an increase in both aggregate demand and real GDP, but have no effect on the price level.
• B) aggregate demand and aggregate supply to increase by the same amounts, causing real GDP to increase and the price level to remain constant.
• C) an increase in both aggregate supply and real GDP, but have no effect on the price level.
• D) an increase in both aggregate supply and real GDP and a reduction in the price level.

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Definitions:

Amygdala

A component of the brain's limbic system involved in emotion, particularly the processing of fear.

Brainstem

The lower part of the brain that connects the cerebrum with the spinal cord and controls vital bodily functions such as breathing, heart rate, and blood pressure.

Medulla

A region at the base of the brainstem that controls vital life-sustaining functions such as heartbeat, breathing, blood pressure, and digestion.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.