Other Things Equal, an Increase in Aggregate Supply Will Cause

question 6

Multiple Choice

Other things equal, an increase in aggregate supply will cause:

• A)a decrease in equilibrium real GDP and a decrease in the equilibrium price level.
• B)an economic contraction.
• C)an increase in equilibrium real GDP and an increase in the equilibrium price level.
• D)cost-push inflation.
• E)a reduction in unemployment and a decline in inflation.

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Definitions:

Thorazine

A medication primarily used to treat psychotic disorders such as schizophrenia, known generically as chlorpromazine.

Antipsychotic

A classification of medication primarily used to manage psychosis, including schizophrenic and bipolar disorders, by altering neurotransmitter levels in the brain.

Drug

A substance that, when ingested, injected, inhaled, or absorbed, can alter physiological or psychological functions in living organisms.

Motor Coordination

The ability to execute smooth, accurate, and controlled motor responses, integrating the movement of various body parts.