If the Economy's Short-Run Aggregate Supply Curve Is Upward Sloping

question 102

Multiple Choice

If the economy's short-run aggregate supply curve is upward sloping, an increase in
Aggregate demand will cause

• A) an increase in the price level and employment.
• B) a decrease in the price level and employment.
• C) an increase in the price level and a decrease in employment.
• D) a decrease in the price level and an increase in employment.

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Definitions:

Tracking Mechanism

A system or process used to monitor and follow the movement or progress of an object, individual, or trend.

Nystagmus

A condition characterized by involuntary, rapid, and repetitive movements of the eyes.

Saccades

Rapid, ballistic movements of the eyes that abruptly change the point of fixation to scan a visual scene or follow a moving object.

Vertigo

A sensation of spinning or having one's surroundings spin, often caused by inner ear problems.