Which of the Following Could Explain Why There Is an Increase

question 166

Multiple Choice

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP does not rise?

• A)SRAS shifted to the right by more than LRAS.
• B)AD shifted to the right by more than SRAS.
• C)AD shifted to the right by less than SRAS.
• D)SRAS and AD do not shift.

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Definitions:

Andesite

A volcanic rock of intermediate composition, typically found in volcanic arcs associated with subduction zones.

Volcanic Domes

Rounded, bulbous formations of lava that accumulate near and around volcanic vents, often resulting from the slow extrusion of viscous lava.

Volcanic Glass

A type of rock that forms from the rapid cooling of magma without crystallization, resulting in a smooth, glassy texture.

Volcanic Dome

A rounded mound formed by the slow extrusion of viscous lava from a volcano.