If We Observe an Increase in Real GDP and an Increase

question 270

Multiple Choice

If we observe an increase in real GDP and an increase in the price level after an increase in aggregate demand, we can conclude that

• A) the aggregate supply curve is upward sloping.
• B) the aggregate supply curve is horizontal.
• C) the aggregate supply curve is vertical.
• D) the economy is now at full employment.

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Definitions:

Arachnophobia

An intense and irrational fear of spiders and other arachnids, leading to avoidance or distress at the thought or sight of them.

Obsession

Persistent, intrusive, and unwanted thoughts that cause distress or anxiety.

Compulsion

An irresistible urge to behave in a certain way, especially against one's conscious wishes.

Delusion

A false belief held with strong conviction despite superior evidence to the contrary, often occurring as a symptom of a psychiatric disorder.