-Refer to the Above Diagram

question 3

Multiple Choice

-Refer to the above diagram.If aggregate supply shifts from AS₁ to AS₂,then the price level will:

• A) increase and real domestic output will increase.
• B) decrease and real domestic output will increase.
• C) increase and real domestic output will decrease.
• D) decrease and real domestic output will decrease.

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Definitions:

Rule of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.

Constitutional Law

Laws that set the bounds of government and governmental procedures.

Theocratic Law

A legal system in which laws are based on religious teachings and beliefs.

Procedural Law

The body of law that prescribes the process and methods for enforcing rights and duties and obtaining redress (as compared to substantive law, which deals with the rights and duties themselves).