Holding the Level of Prices Fixed Implies That a Given

question 169

Multiple Choice

Holding the level of prices fixed implies that a given decrease in aggregate demand

• A) will have a smaller effect on real GDP than would be the case if prices were more flexible.
• B) will have a larger effect on real GDP than would be the case if prices were more flexible.
• C) has the same effect on real GDP as when prices are more flexible.
• D) has a smaller effect on nominal GDP than when prices are more flexible.

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Definitions:

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia, characterized by their ability to move, consume organic material, breathe oxygen, and reproduce sexually.

Fungi

A kingdom of organisms that includes yeasts, molds, and mushrooms, which do not carry out photosynthesis and may be decomposers or pathogens.

Bacteria

Microscopic, single-celled organisms found in diverse environments; essential for various biological processes but can also cause disease.

Defective Meiosis

Defective meiosis refers to errors in the process of meiosis, which can result in genetic anomalies such as chromosomal missegregations, leading to infertility or genetic disorders.