If the Shifts in AD That Will Result from Policy

question 13

Multiple Choice

If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?

• A)​a higher level of real output and a higher price level
• B)​a higher level of real output but no change in the price level
• C)​a higher price level and a reduced level of real output
• D)​a higher price level but no change in real output

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Definitions:

Acetylcholine

is a neurotransmitter in the nervous system that plays an essential role in muscle contraction and aids in arousal, attention, memory, and motivation.

Genetic Component

Refers to the part of an individual's traits or conditions that are determined by genes, encompassing aspects like inherited characteristics, susceptibility to diseases, and physical attributes.

Serotonin

A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.

Genetic Components

The elements of an organism's genetic makeup that determine inherited characteristics and predispositions.