Exhibit 10-8 -In the Short Run,if the Economy Is Operating Below Potential

question 31

Multiple Choice

Exhibit 10-8
-In the short run,if the economy is operating below potential output and if the aggregate supply curve shifts outward,then the price level will

• A)decrease and output will increase
• B)increase and output will decrease
• C)decrease and output will decrease
• D)increase and output will increase
• E)increase and output will remain unchanged

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Definitions:

Linear Perspective

A depth cue that parallel lines converge in the distance at a vanishing point on the horizon line.

Distance Cue

Visual information that helps perceive the distance or depth of objects in one's environment, crucial for spatial awareness.

Parallel Rows

Lines or sequences of objects placed side by side, keeping the same distance continuously between them.

Retinal Disparity

The slight difference in the visual images that the two eyes perceive, which is important for depth perception.