Given the Aggregate Demand Curve,a Beneficial Supply Shock Will

question 108

Multiple Choice

Given the aggregate demand curve,a beneficial supply shock will:

• A)increase potential output and the price level.
• B)decrease potential output and the price level.
• C)increase potential output and decrease the price level.
• D)decrease potential output and increase the price level.
• E)cause no change in potential output or the price level.

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Definitions:

Puff of Air

A brief blast or gust of air, often used in experimental contexts to test sensory sensitivity or as a form of stimulus.

Blinking

The rapid closing and opening of the eyelid, a reflex action to protect the eye from irritants and help spread tears over the surface.

CR

A term that could refer to several concepts depending on the context, such as Conditioned Response in behavioral psychology, indicating a learned response to a previously neutral stimulus.

Salivating

The production and release of saliva in the mouth, often in response to the anticipation of food, through a reflex action.