Aggregate Demand (AD)shocks Have a Smaller Effect on Real GDP

question 95

Multiple Choice

Aggregate demand (AD) shocks have a smaller effect on real GDP and a larger effect on the price level

• A)the steeper the AS curve.
• B)on the downward-sloping portion of the AS curve.
• C)the flatter the AS curve.
• D)on the upward-sloping portion of the AS curve.
• E)if the AD curve is flatter.

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Definitions:

Allocentric Individuals

People who prioritize others and the group's needs over their own individual interests.

Positive Coping

The use of constructive and adaptive strategies to manage stress and overcome challenges, leading to personal growth and well-being.

Personal Growth

The process of improving oneself through activities that enhance self-awareness and identity, develop talents and potential, and contribute to the realization of dreams and aspirations.

Agency Thinking

Refers to the capacity of individuals to act independently and make their own free choices.