Exhibit 8-3 -Refer to Exhibit 8-3. a Shift in Aggregate Demand from in Aggregate

question 7

Multiple Choice

Exhibit 8-3

-Refer to Exhibit 8-3. A shift in aggregate demand from AD? to AD? would have been the result of

• A) a decrease in the price level.
• B) an increase in the price level.
• C) businesses become more optimistic about future sales.
• D) businesses become more pessimistic about future sales.

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Definitions:

Market

A system where buyers and sellers interact to trade goods, services, and resources.

Productivity

The efficiency with which inputs, like labor and capital, are converted into outputs, typically measured as a ratio of output to input.

Percent

A part per hundred, a unit of measure used to express the fraction of a quantity relative to one hundred parts of the total.

Industrial Country

A nation with a significant level of development and industrial capacity, often characterized by a high standard of living and a diverse economy.