What Would Cause Prices and Real GDP to Rise in the Short

question 6

Multiple Choice

What would cause prices and real GDP to rise in the short run?

• A) short-run aggregate supply shifts right
• B) short-run aggregate supply shifts left
• C) aggregate demand shifts right
• D) aggregate demand shifts left

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Definitions:

Interest Allowance Method

A method used in accounting to allocate interest expense over the life of a debt at a constant rate.

Original Investment

The initial amount of money spent to acquire an asset or start a business venture, not including subsequent expenses.

Retail Selling Price

The price at which goods are sold to the public, typically higher than the wholesale price to include profit margin.

Salary Allowances

Amounts allocated in addition to base salary, often to cover expenses such as housing, transportation, or for specific purposes set by the employer.