In the Short Run, an Increase in Aggregate Demand

question 206

Multiple Choice

In the short run, an increase in aggregate demand

• A) lowers the price level and increases real GDP.
• B) raises the price level and decreases real GDP.
• C) raises the price level and increases real GDP.
• D) lowers the price level and decreases real GDP.

---

Definitions:

Capacitance Unit

The unit of measurement for capacitance, the farad (F), indicating the ability of a system to store an electric charge.

Farad

The unit of capacitance in the International System of Units (SI), symbolized as F, indicating the capacity of a capacitor to store charge per unit voltage.

Leakage Current

The amount of current that flows through the dielectric separating the plates of a capacitor.

Dielectric Material

A non-conductive substance that is used to store electric charge, typically between the plates of a capacitor.