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.

---

Definitions:

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.

Wavelengths

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.

Trichromatic Theory

The trichromatic theory of color vision posits that the human eye has three types of receptors sensitive to red, green, and blue light, which combine to produce the perception of all colors.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable the perception of color.