In the Long Run, an Increase in Aggregate Demand, All

question 73

Multiple Choice

In the long run, an increase in aggregate demand, all other things unchanged, will cause the price level to

• A) increase and potential output to increase.
• B) decrease and potential output to decrease.
• C) increase and potential output to remain stable.
• D) decrease and potential output to remain stable.

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Definitions:

Intangible Asset

Assets that are not physical in nature, including goodwill, software, and licensing agreements, valuable to a company's operations.

Lease Agreement

A contract outlining the terms under which one party agrees to rent property owned by another party.

Customer List

An asset consisting of the information about customers that a business uses for marketing, sales, and other strategic purposes.

Database

A systematic collection of data, organized so that it can easily be accessed, managed, and updated.