Suppose the Nation Is in a Recession

question 206

Multiple Choice

Suppose the nation is in a recession.As a result,the current macroeconomic equilibrium occurs along the flat portion of the aggregate supply curve.A moderate increase in aggregate demand is likely to

• A)increase the equilibrium price level with little effect on equilibrium real GDP.
• B)increase equilibrium real GDP with little effect on the price level.
• C)cause the price level to fall.
• D)decrease employment.

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Definitions:

Canadians

Individuals who are citizens of Canada, either by birth or naturalization, or who identify with the culture and society of Canada.

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to people of one's own sex.

Percentage

A mathematical term that represents a number or ratio expressed as a fraction of 100.

Women's Movement

A series of campaigns for reforms on issues such as reproductive rights, domestic violence, maternity leave, equal pay, and women's suffrage, aimed at achieving equality and eliminating gender discrimination.