If Aggregate Demand Shifts Left,then in the Short Run

question 78

Multiple Choice

If aggregate demand shifts left,then in the short run

• A)the price level and real GDP both rise.
• B)the price level rises and real GDP falls.
• C)the price level falls and real GDP rises.
• D)the price and real GDP both fall.

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Definitions:

Tax Policy

The set of laws and regulations that govern how taxes are collected, managed, and utilized by the government.

Production Possibilities Frontier

The production possibilities frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs.

Societal Welfare

The overall well-being and quality of life of the people in a society, often considered in terms of economic, social, and environmental indicators.

Relative Price

The price of a good or service in comparison to that of other goods and services, reflecting its value relative to alternative purchases.