In the Long Run,an Increase in Aggregate Demand Will Lead

question 64

Multiple Choice

In the long run,an increase in aggregate demand will lead to

• A)A higher price level and an increase in real GDP.
• B)A higher price level only.
• C)An increase in real GDP only.
• D)A decrease in real GDP.

---

Definitions:

Prescriptive Norms

Social rules that dictate what behavior is expected or appropriate within a community or society.

Proscriptive Norms

Social rules that dictate what behaviors are forbidden or discouraged within a society or group.

Ethnomethodology

A sociological approach that studies the way people make sense of their everyday world, emphasizing the methods and practices individuals use to constitute their social realities.

Rational Choice Theory

A framework for understanding and modeling social and economic behavior based on the assumption that individuals act rationally, making decisions to maximize their personal benefit.