-Refer to Figure 15-9

question 91

Multiple Choice

-Refer to Figure 15-9.Suppose the economy is in equilibrium with real GDP of $7 trillion.A demand shock shifts the aggregate demand curve to AD₂,increasing real GDP to its full-employment level of $7.2 trillion.In the long run,following the shock,we would expect the

• A) aggregate demand curve to shift rightward,further increasing real GDP and the price level
• B) aggregate demand curve to shift leftward,returning real GDP to $7 trillion
• C) aggregate supply curve to shift downward,returning the price level to 120
• D) aggregate supply curve to shift upward,returning real GDP to $7 trillion
• E) economy to remain at the new level of output of $7.2 trillion

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Definitions:

Spinal Cord

The long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the spine, part of the central nervous system.

Cerebrum

The largest part of the brain, responsible for cognitive functions such as thought, memory, problem-solving, and decision making, as well as processing sensory and motor information.

Muscle Tone

The continuous, partial contraction of individual muscles and muscle groups.

Posture

The position in which someone holds their body when standing or sitting.