In the Long Run,an Increase in Aggregate Demand

question 26

Multiple Choice

In the long run,an increase in aggregate demand:

• A)increases the price level and real output,but the effect on the price level is larger.
• B)increases the price level and real output,but the effect on output is larger.
• C)affects only real output.
• D)affects only the price level.
• E)affects neither the price level nor real output.

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Definitions:

Moral Imperative

A duty or obligation guided by ethical considerations and principles, compelling an individual or society to act in a certain manner.

Altruism

The practice of selfless concern for the well-being of others.

Empirical Research

The process of collecting and analyzing data through observation or experiment to validate hypotheses or understand phenomena.

Applied Theory

Refers to the use of theories in practical, real-world situations to solve problems or inform practices.