If Higher GDP Stems from an Increase in Aggregate Demand

question 85

Multiple Choice

If higher GDP stems from an increase in aggregate demand, then it is likely that:

• A) the level of inflation will also increase.
• B) aggregate supply will decrease.
• C) investments in infrastructure will reduce.
• D) unemployment rate will also increase.

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Definitions:

Informal Communication

This is the unofficial, casual form of communication that occurs within an organization, often referred to as the grapevine.

Federal Labor Laws

Laws established by the federal government to regulate labor practices, protect workers' rights, and manage relations between unions, employees, and employers.

Stock Options

A form of employee benefit that gives an employee the right, but not the obligation, to purchase company stock at a set price within a specific time period.

Hourly Employees

Workers who are paid for the number of hours they work, rather than receiving a fixed salary.