An Increase in Aggregate Demand, All Other Things Unchanged, in the Long

question 122

Multiple Choice

An increase in aggregate demand, all other things unchanged, in the long run will generate

• A) an increase in potential output and no change in the price level.
• B) a decrease in potential output and no change in the price level.
• C) no change in potential output and an increase in the price level.
• D) no change in potential output and a decrease in the price level.

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Definitions:

Precise Language

The use of clear, specific, and unambiguous terms in communication or writing to accurately convey a message.

Budget Increase

An upward adjustment in the allocated funds for a particular purpose or period.

Slang

Informal language consisting of words and expressions that are not considered standard in the speaker's language or dialect.

Cliched

Describing phrases or ideas that have been overused to the point of losing their original meaning or effectiveness.