An Increase in Aggregate Demand, All Other Things Unchanged, in the Long

question 122

Multiple Choice

An increase in aggregate demand, all other things unchanged, in the long run will generate

• A) an increase in potential output and no change in the price level.
• B) a decrease in potential output and no change in the price level.
• C) no change in potential output and an increase in the price level.
• D) no change in potential output and a decrease in the price level.

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Definitions:

Uncertainty Reduction Theory

A communication theory that suggests individuals seek to reduce uncertainty about others through information gathering to predict behavior.

Motivated

Having the desire and willingness to achieve something, often driven by internal or external factors that inspire action.

Co-Workers

Individuals who work together in the same organization or on the same team, but not necessarily in the same role or position.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their social position.