Figure 33-5. -Refer to Figure 33-5.Starting from Point B and Assuming That

question 99

Multiple Choice

Figure 33-5.
-Refer to Figure 33-5.Starting from point B and assuming that aggregate demand is held constant,in the long run the economy is likely to experience

• A)a falling price level and a falling level of output,as the economy moves to point C.
• B)a falling price level and a rising level of output,as the economy moves to point A.
• C)a rising price level and a falling level of output,as the economy moves to point A.
• D)a rising price level and a rising level of output,as the economy moves to point C.

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Definitions:

Tennessee Valley Authority

Administrative body created in 1933 to control flooding in the Tennessee River valley, provide work for the region’s unemployed, and produce inexpensive electric power for the region.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to respond to the Great Depression.

Liberalism

A political and moral philosophy based on liberty, consent of the governed, and equality before the law, emphasizing individual rights, democracy, and free markets.

Limited Government

A governing philosophy where governmental power is restricted by law, often in order to protect citizens' freedoms and rights.