In the Basic AD/AS Macro Model,permanent Increases in Real GDP

question 130

Multiple Choice

In the basic AD/AS macro model,permanent increases in real GDP are possible only if

• A)potential output is increasing.
• B)the correct fiscal policy is implemented.
• C)the economy's automatic stabilizers are allowed to operate.
• D)the aggregate supply curve is vertical.
• E)aggregate demand responds positively to demand shocks.

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide and water.

Mitochondrial Matrix

The innermost compartment of the mitochondrion and the site of the citric acid cycle, which produces energy for the cell.

Acetyl-CoA

A molecule involved in metabolism, serving as a key intermediate in several biochemical reactions, including the synthesis and oxidation of fatty acids.

ATP Synthases

A complex of enzymes found in the mitochondria and chloroplasts that produce ATP, the primary energy carrier in cells, using a proton gradient.