An Increase in Aggregate Demand Is Harmful Because

question 69

Multiple Choice

An increase in aggregate demand is harmful because

• A) workers with sticky wages are paying more for goods and services.
• B) firms have sticky input prices and earn less profit.
• C) unemployment rises.
• D) output has risen above the full-employment level.
• E) wages will have to fall in the long run.

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Definitions:

Alpha Particle

A type of radioactive particle consisting of two protons and two neutrons, equivalent to a helium-4 nucleus, ejected from certain radioactive nuclei.

Beta Particle

An electron or positron, characterized by its high speed and energy, released by an atomic nucleus undergoing radioactive decay.

Gamma Ray

High-energy electromagnetic radiation emitted by atomic nuclei during radioactive decay, with higher energy than X-rays.

Radiation Sickness

A serious illness caused by excessive exposure to ionizing radiation, affecting the skin, gastrointestinal tract, and bone marrow.