In the Simple Keynesian Model,a Rightward Shift in the Aggregate

question 36

Multiple Choice

In the simple Keynesian model,a rightward shift in the aggregate demand curve __________ result in a change in the price level when the economy is in the horizontal segment of the AS curve and ___________ result in a change in the price level if the economy is in the vertical segment of the AS curve.

• A) will not; will
• B) will not; will not
• C) will; will not
• D) will; will

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Definitions:

Autonomic System

Part of the nervous system that controls involuntary bodily functions such as heart rate, digestion, and respiration.

Spinal Cord

The main pathway for information connecting the brain and peripheral nervous system.

Neurons

Special cells within the nervous system that communicate information via electrical and chemical signals.

Cerebellum

A part of the brain at the back of the skull in vertebrates, which is responsible for coordinating and regulating muscular activity.