New Keynesian Inflation Dynamics Predicts That an Increase in Aggregate

question 124

Multiple Choice

New Keynesian inflation dynamics predicts that an increase in aggregate demand will generate, in chronological order

• A) a leftward movement along a horizontal short-run aggregate supply curve, a short-run decline in real GDP, a downward shift in the short-run aggregate supply curve, and a decrease in the price level.
• B) a rightward movement along a horizontal short-run aggregate supply curve, a short-run increase in real GDP, an upward shift in the short-run aggregate supply curve, and an increase in the price level.
• C) an leftward shift in a vertical short-run aggregate supply curve, a short-run decline in real GDP, an upward movement along the short-run aggregate supply curve, and an increase in the price level.
• D) a rightward shift in a vertical short-run aggregate supply curve, a short-run increase in real GDP, an upward movement along the short-run aggregate supply curve, and an increase in the price level.

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Definitions:

Metastases

The spread of cancer cells from the original tumor site to other parts of the body, forming new tumors.

Uncontrollable Growth

Typically refers to the abnormal and unchecked cell proliferation seen in cancerous tumors and other diseases, leading to potential harm and dysfunction in the body.

Presbyopia

Loss of elasticity in the eye lens that makes it harder to focus on nearby objects.

Aphakia

The absence of the lens in the eye, which can occur naturally or can be surgically or accidentally removed.