Using Figure 8

question 1

Multiple Choice

Using Figure 8.7,a shift in aggregate demand from AD₄ to AD₅ is most likely to cause

• A)An increase in real output and an increase in the price level.
• B)An increase in real output but no change in the price level.
• C)An increase in price level but no change in real output.
• D)A decrease in price level but no change in real output.

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, usually expressed as a percentage of total sales in that market.

Postponement

A strategy where the final assembly or customization of a product is delayed until the latest possible time to reduce inventory costs and respond to customer demand more precisely.

Backward Integration

A type of vertical integration where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Horizontal Integration

A strategy where a company acquires or merges with other companies at the same level of the supply chain in the same or different industries, to increase market share or product offerings.