Aggregate Demand and Supply Analysis

question 100

Multiple Choice

Aggregate Demand and Supply Analysis
-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.If there is no policy intervention,then the figure implies that when output has reached $12 trillion,the real interest rate will be ________ percent,and the inflation rate will be ________ percent.

• A)1.5;one
• B)one;zero
• C)zero;minus 2
• D)0.5;minus one
• E)2.5;three

---

Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.

Analytic Ability

The skill to study or determine the nature of a problem or subject by breaking it down into its smaller parts.

Sternberg

Refers to Robert Sternberg, an American psychologist known for his theories on intelligence and creativity.

Objective Tests

Assessments that have fixed answers and are scored without bias, often in the form of multiple-choice, true/false, or fill-in-the-blank questions.