In the AD-AS Model,an Unexpected Decrease in the Growth Rate

question 157

Multiple Choice

In the AD-AS model,an unexpected decrease in the growth rate of the money supply causes:

• A) a rightward shift of the AD curve and then an upward shift of the SRAS curve.
• B) a rightward shift of the AD curve and then a downward shift of the SRAS curve.
• C) a leftward shift of the AD curve and then an upward shift of the SRAS curve.
• D) a leftward shift of the AD curve and then a downward shift of the SRAS curve.

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Definitions:

Satisficing

A decision-making strategy that involves selecting an option that meets a minimum level of satisfaction, rather than optimizing outcomes.

Alternative

A distinct option or choice among multiple possibilities.

Conscious Reasoning

The deliberate use of logic and rational thinking in making decisions or solving problems, typically involving awareness and reflective thought.

Intuition

The skill to comprehend or perceive something right away, bypassing the process of conscious deliberation.