A Rise in Aggregate Demand and a Fall in Short-Run

question 161

Multiple Choice

A rise in aggregate demand and a fall in short-run aggregate supply will definitely

• A) raise the price level, but there is not enough information to know how Real GDP will change.
• B) lower Real GDP, but there is not enough information to know how the price level will change.
• C) raise the price level and Real GDP.
• D) raise Real GDP, but there is not enough information to know how the price level will change.
• E) raise the price level and lower Real GDP.

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Definitions:

Correlational Research

A type of non-experimental research method that measures the relationship between two or more variables, without implying causation.

Systematic Observations

Observational methods that are structured and organized in a consistent manner to collect data about behavior or phenomena.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Educational Researcher

A professional who studies and analyses processes related to education and learning methodologies, aiming to improve educational systems and outcomes.