Assuming Aggregate Supply Is Upward-Sloping and Aggregate Demand Is Downward-Sloping,a

question 15

Multiple Choice

Assuming aggregate supply is upward-sloping and aggregate demand is downward-sloping,a sudden reduction in a nation's exports will

• A) cause inflation
• B) cause recession
• C) cause stagflation
• D) increase GDP and reduce prices
• E) increase GDP and raise equilibrium prices

---

Definitions:

Kulik

Refers to James Kulik, a psychologist who contributed to the understanding of the effects of feedback on learning and the benefits of computer-based instruction.

Equity Theory

A theory that proposes that individuals are motivated by a desire for fairness and equity in their relationships and will take actions to maintain or restore equity.

Apathetic

Characterized by a lack of interest, enthusiasm, or concern for things that others find moving or exciting.

Antarctic

The Earth's southernmost continent, surrounding the South Pole, known for its extreme cold temperatures and ice-covered landscape.