In the Short Run, If Aggregate Demand Shifts to the Left

question 295

Multiple Choice

In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then

• A) the level of economic activity rises.
• B) a recessionary gap occurs.
• C) there is no change in real GDP and the price level.
• D) an inflationary gap occurs.

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Definitions:

Cornea

The clear, outer layer at the front of the eye that helps focus incoming light onto the retina.

Golgi Tendon Organs

Sensory receptors located at the junction of muscles and tendons that monitor tension developed in muscles.

Proprioceptors

Proprioceptors are sensory receptors located in muscles, tendons, and joints that help to convey information about body position and movement.

Dermis

The dermis is the thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and blood vessels.