-The Figure Above Illustrates the Aggregate Demand, Short-Run Aggregate Supply

question 84

Multiple Choice

-The figure above illustrates the aggregate demand, short-run aggregate supply, and long-run aggregate supply in Lotus Land. The economy is currently at point D and the government increases its expenditure on goods and services. The economy will move to ________. The price level will ________, and the change in real GDP will be ________ the increase in aggregate demand.

• A) point A; fall; less than
• B) point D; rise; less than
• C) point C; rise; less than
• D) point B; remain constant; the same as

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Definitions:

Relaxation Response

A physiological state of deep rest that can be elicited through various practices such as meditation or deep breathing, counteracting stress effects.

Religion-based Techniques

Strategies or practices grounded in religious beliefs used to solve problems, improve well-being, or achieve spiritual goals.

Active Attitude

A proactive and engaged approach to situations, characterized by taking initiative and directly influencing outcomes.

Non-analytic Way

Pertaining to approaches or methods that do not involve detailed examination or analysis, often relying on intuition or abstract thinking.