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:

Equity of Redemption

The right of a mortgagor to reclaim property in the process of foreclosure by paying the debt owed.

Debtor

An individual or entity that owes money to another; the opposite party in these transactions is known as a creditor.

Mortgagor

The borrower in a mortgage agreement, who pledges the property as security for the repayment of the loan.

Mortgagee

The lender in a mortgage agreement, typically a bank or financial institution, that has the legal rights to the property as security for the loan provided.