-Refer to Figure 15-6

question 37

Multiple Choice

-Refer to Figure 15-6.If the price level is currently at 140,what would we expect to occur in the short run?

• A) The price level will remain at 140 and businesses will cut production to $5.5 trillion.
• B) The price level will remain at 140 and the extra $2 trillion in real GDP will be saved for future use.
• C) The aggregate supply curve will shift upward until it intersects the aggregate demand curve at a price level of 140 and real GDP of $5.5 trillion.
• D) The aggregate demand curve will shift right until it intersects the aggregate supply curve at a price level of 140 and real GDP of $7.5 trillion.
• E) Inventories will accumulate and businesses will cut production until equilibrium is reached at a price level of 120 and real GDP of $6.5 trillion.

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Definitions:

Trophic Level

The position an organism occupies in a food chain, categorized by how it obtains energy; primary producers form the base, followed by various levels of consumers.

Geographic Location

This refers to a specific physical point on Earth's surface as defined by a coordinate system such as latitude and longitude.

Semiarid Climates

Climates characterized by light rainfall, often leading to conditions that support only grasses and shrubs rather than dense forests.

Abundant Precipitation

A high amount of rainfall or snowfall in an area, often leading to increased water availability but possibly also causing flooding and other issues.