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:

Guidance

Advice or information aimed at resolving a problem or reaching a decision.

Consequences Approach

A method or strategy that emphasizes the outcomes or results of actions, particularly in educational or behavioral contexts.

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The shared values, norms, beliefs, languages, and practices of particular groups of people that shape their worldview and ways of living.

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