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As the Aggregate Demand Curve Shifts to the Right, What

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As the aggregate demand curve shifts to the right, what happens to the price level and output? What do these changes imply happens to the inflation rate and the unemployment rate?


Definitions:

Entrepreneurial Behavior

Actions and attitudes characteristic of entrepreneurs, such as innovation, risk-taking, and proactiveness, in pursuing new business ventures.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and costs.

Innovation Development

The process of designing, creating, and implementing new products, services, or technologies that offer new value to customers or improve operating processes.

Product Design

The process of creating and developing new products, taking into consideration aspects like functionality, aesthetics, and usability.

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