A Positive Aggregate Demand Shock Will Only Impact ________

question 17

Multiple Choice

A positive aggregate demand shock will only impact ________.

• A) the equilibrium output
• B) the equilibrium inflation rate
• C) the short run aggregate supply curve
• D) none of the above

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Definitions:

Organizing Economies

The structured arrangement and management of economic activities and resources within a community, region, or country, aiming for efficiency and growth.

German Republic

Refers to the Weimar Republic, the democratic government of Germany from 1919 to 1933, established after World War I and ended with the rise of Nazi power.

Paris Peace Conference

An international meeting in 1919 that led to the signing of the Treaty of Versailles, ending World War I and redrawing the map of Europe.

League of Nations

An international organization founded after World War I to promote world peace and cooperation, but was ultimately unable to prevent World War II.