Figure 17-3 -In the Figure Above, SAS0 Must Shift to SAS1 When

question 72

Multiple Choice

Figure 17-3
-In the figure above, SAS0 must shift to SAS1 when

• A) the actual price level rises
• B) the expected price level rises
• C) AD0 shifts to AD1.
• D) the nominal money supply rises.

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Definitions:

Reconstruction Finance Corporation

A government agency established in 1932 in the United States to provide financial support to banks, industries, and other institutions to stimulate economic recovery.

Struggling Banks

Financial institutions experiencing significant challenges such as liquidity issues, insolvency, or failure to meet regulatory requirements.

Congress 1932

Refers to the 72nd United States Congress, notable for its enactment of significant legislation during the Great Depression under President Franklin D. Roosevelt's New Deal.

Nationalizing Industries

The transfer of private sector enterprises to the ownership and operation of the government with the goal of taking control over critical industries or resources.