The Aggregate Demand-Aggregate Supply Framework Indicates That the Long-Run Effect

question 44

Multiple Choice

The aggregate demand-aggregate supply framework indicates that the long-run effect of a ________ in the money supply is an increase in ________, everything else held constant.

• A) fall; aggregate output
• B) fall; the inflation rate
• C) rise; aggregate output
• D) rise; the inflation rate

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Definitions:

Diagram

represents a simplified drawing or plan that demonstrates the arrangement or workings of something, often using symbolic representations.

Wise Use

An approach emphasizing sustainable and judicious use of natural resources to balance ecological and human needs.

Reduce Waste

The initiative to minimize the amount of waste generated by consuming less, recycling, and employing sustainable practices to protect the environment.

Aquifer

An underground layer of water-bearing permeable rock or unconsolidated materials from which groundwater can be extracted using a water well.