-Refer to the Above Figure

question 225

Multiple Choice

-Refer to the above figure. Unexpected contractionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run

• A) real GDP will be Y1, and the price level will be P1.
• B) real GDP will be Y2, and the price level will be P2.
• C) real GDP will be between Y1 and Y2, and the price level will be above P1.
• D) real GDP will be between Y1 and Y2, and the price level will be below P2.

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Definitions:

Second Industrial Revolution

A phase of rapid industrialization in the final third of the 19th century and the beginning of the 20th, known for advancements in steel production, electricity, and chemical synthesis.

Scramble for Africa

The rapid colonization of Africa by European powers during the late 19th and early 20th centuries, driven by economic interests, political competition, and cultural motives.

J.A.Hobson

An English economist and social scientist best known for his critique of imperialism and his theory on the economic roots of imperialism.

Industrial Capitalism

An economic system characterized by private or corporate ownership of capital goods, production for profit, and the predominance of industrial manufacturing and finance.