Use the Following to Answer Questions

question 53

Multiple Choice

Use the following to answer questions :
Figure: Classical Model of the Price Level
-(Figure: Classical Model of the Price Level) Look at the figure Classical Model of the Price Level. If the central bank increases the money supply such that aggregate demand shifts from AD₁ to AD₂, according to this classical model, the price level will:

• A)not change.
• B)increase from P₁ to P₂.
• C)increase from P₁ to P₃.
• D)decrease from P₁ to P₂.

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Definitions:

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Neurotransmitters

Chemical messengers that transmit signals across the synaptic cleft from one neuron to another, influencing mental processes and behavior.

Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.

Synapse

The junction between two neurons or between a neuron and a muscle where electrical or chemical signals are transmitted.