In the Short Run, If Aggregate Demand Shifts to the Left

question 295

Multiple Choice

In the short run, if aggregate demand shifts to the left while the position of the short-run aggregate supply curve does NOT change, then

• A) the level of economic activity rises.
• B) a recessionary gap occurs.
• C) there is no change in real GDP and the price level.
• D) an inflationary gap occurs.

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Definitions:

Intracellular Receptors

Proteins located within the cell cytoplasm or nucleus that bind to specific molecules and trigger cellular responses.

Steroid Hormones

Hormones, such as insect molting hormone, cortisol, and male/female sex hormones, that are derived from cholesterol.

Thyroid Hormones

Hormones, including thyroxin (T4) and triiodothyronine (T3), secreted by the thyroid gland; stimulate rate of metabolism.

Surface Receptors

Proteins located on the cell membrane that bind to specific molecules in the cell's external environment, initiating a cellular response.