Aggregate Demand and Supply Analysis

question 60

Multiple Choice

Aggregate Demand and Supply Analysis
-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves,as shown in the figure.The equilibrium real interest rate is ________ percent.

• A)3
• B)one
• C)2.5
• D)2
• E)zero

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Definitions:

Hormone Imbalance

A condition in which there is a disruption in the normal balance of hormones in the body, potentially affecting bodily functions and well-being.

Allostasis

The process of achieving stability or homeostasis through physiological or behavioral change.

Adrenal Cortex

The outer layer of the adrenal glands that produces steroid hormones which regulate metabolism and immunity.

Adrenal Medulla

The inner part of the adrenal gland that produces adrenaline and noradrenaline, hormones involved in the body's stress response.