In the Short Run,policy That Changes Aggregate Demand Changes

question 41

Multiple Choice

In the short run,policy that changes aggregate demand changes

• A)both unemployment and the price level.
• B)neither unemployment nor the price level.
• C)only unemployment.
• D)only the price level.

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Definitions:

Salary

A fixed amount of wages paid to an employee on a regular basis for a prescribed period of time, for example, weekly or monthly.

Fixed Amount

A specific, unchanging sum of money that is agreed upon for transactions, payments, or financial obligations.

Benefits

Sometimes known as fringe benefits.

Paid Time Off

A workplace policy where employees are provided with a certain amount of days for which they are paid while being allowed to take time off from work.