Suppose the AD and SAS Curves Shift Upward by the Same

question 30

Multiple Choice

Suppose the AD and SAS curves shift upward by the same amount.Real GDP would ________ while the price level ________.

• A)remain unchanged,rises
• B)remain unchanged,remains unchanged
• C)remain unchanged,falls
• D)rise,remain unchanged
• E)fall,rises

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Definitions:

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain, thereby controlling production of its supplies.

Acquires Suppliers

The process by which a company takes over or purchases its suppliers to control the supply chain.

Unrelated Diversification

A corporate strategy where a company expands into areas or industries that are not related to its current business or products.

New Businesses

Enterprises that have been recently established and are in the early stages of operation.