In the Keynesian Region of the Aggregate Supply Curve

question 14

Multiple Choice

In the Keynesian region of the aggregate supply curve:

• A)increases in aggregate demand are associated with decreases in output, but not with increases in prices.
• B)decreases in aggregate demand are associated with increases in prices, but not with increases in output.
• C)increases in aggregate demand are associated with increases in output, but not with increases in prices.
• D)decreases in aggregate demand are associated with increases in output, but not with increases in prices.
• E)increases in aggregate demand are associated with increases in prices, but not with increases in output.

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Definitions:

Fracturing

The breaking or splitting of rocks due to physical forces, without the material undergoing a significant change in chemical composition or texture.

Shearing

The process of stress on rock or soil that causes layers or parts to slide past each other in opposite directions.

Confining Pressure

Describes the pressure imposed on a layer of soil or rock by the weight of the material above it.

Tension

A force that stretches something by pulling on it, often applied to materials in physics to describe stretching that leads to elongation.