-Refer to the Above Diagram

question 80

Multiple Choice

-Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD₁ to AD₂:

• A) real output will rise above Q_f.
• B) the price level will rise from P₁ to P₂.
• C) it is possible that aggregate supply will shift rightward from AS₂ because nominal wage demands will rise.
• D) the price level will rise from P₂ to P₃.

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Definitions:

Endodermal Cells

Cells that form the endoderm, the innermost layer of the embryo, giving rise to the lining of the digestive and respiratory tracts.

Mycorrhizal Relationship

A symbiotic association between a fungus and the roots of a vascular host plant, improving nutrient and water uptake.

Minerals

Inorganic substances required in small amounts for the body's metabolic processes, including bone formation and hormone synthesis.

Sugars

Simple carbohydrates that are used as a primary source of energy by living organisms.