Which of the Following Events Will Cause an Increase in the Aggregate

question 15

Multiple Choice

Which of the following events will cause an increase in the aggregate price level?

• A) An increase in unemployment benefits.
• B) An increase in the unemployment rate.
• C) A decrease in expected prices.
• D) A decrease in markup.
• E) A decrease in output.

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Definitions:

Present Values

The current value of a future sum of money or stream of cash flows, discounted at a specific rate to account for its time value of money.

New Technology

The latest advancements and innovations in methods, tools, or devices that improve efficiency, productivity, or performance in various fields.

Patent Scarcity

Refers to the situation where there is a lack of available patents, often due to high competition or rigorous patenting criteria which can limit innovation.

Natural Scarcity

A situation where resources are limited in availability due to natural conditions, not enough to meet unlimited human wants.