According to the Consensus View,when Demand Increases near Full Employment

question 28

Multiple Choice

According to the consensus view,when demand increases near full employment,

• A)The price level increases,but real GDP stays the same.
• B)Real GDP increases,but the price level stays the same.
• C)Both the price level and real GDP increase.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off against earnings over the bond's life.

Wholly Owned Subsidiary

A company whose entire share capital is owned by another company, making it fully controlled by the parent company.

Statement of Comprehensive Income

A financial statement that includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners, encompassing both net income and other comprehensive income.