How Does an Increase in the Price Level Affect the Position

question 371

Multiple Choice

How does an increase in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?

• A) The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP.
• B) The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP.
• C) The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP.
• D) The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.

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Definitions:

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, produced during DNA replication and present in a cell prior to cell division.

Metaphase

A stage of cell division where chromosomes align in the middle of the cell before being separated into two new cells.

Telophase

The final stage of mitosis or meiosis in cell division, where the chromosomes de-condense and two new nuclear membranes begin to form around the separated chromosomal sets.

Cytokinesis

The process in cell division where the cytoplasm of a single eukaryotic cell is divided into two daughter cells.