Which of the Following Is an Effect of an Increase

question 28

Multiple Choice

Which of the following is an effect of an increase in the price level in an economy?

• A)The real value of dollar-denominated assets will fall.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium real gross domestic product will increase.
• D)There will be a downward movement along the aggregate demand curve of the economy.
• E)The aggregate demand curve of the economy will shift rightward.

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Definitions:

Fiscal Liberal

An individual or policy favoring increased government spending and lower taxation as means to stimulate economic growth and reduce unemployment.

Social Conservative

An ideology focusing on preserving traditional beliefs, values, and institutions, including the importance of family, morality, and maintaining social order.

Pacifist

A person who believes in pacifism, advocating for peace and opposing war or violence as a way to settle disputes.

Federal Government

A system of government where power is divided between a central (national) government and various regional governments.