In the Short Run, Policy That Increases the Aggregate Demand

question 48

Multiple Choice

In the short run, policy that increases the aggregate demand also increases which of the following?

• A) the price level
• B) the unemployment rate
• C) the aggregate supply
• D) the natural rate of unemployment

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Definitions:

Antidepressant Drugs

Medications prescribed to alleviate symptoms of depression by adjusting chemical imbalances in the brain.

Serotonin

A neurotransmitter involved in many functions including mood regulation, digestion, and sleep.

Dopamine

A neurotransmitter in the brain that plays a key role in regulating mood, sleep, learning, and movement, often associated with the pleasure and reward system.

Norepinephrine

A neurotransmitter involved in the body's response to stress and regulation of mood, attention, and arousal.