Assume Initially the Economy Is at Full Employment

question 42

Multiple Choice

Assume initially the economy is at full employment. If aggregate demand increases, the aggregate price level and costs will _____, and ultimately, the short run aggregate supply curve shifts to the _____.

• A) rise; right
• B) rise; left
• C) fall; right
• D) fall; left

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Definitions:

Grooming

The practice of cleaning and maintaining one's appearance for social or professional reasons.

Successor

An individual who follows another in a specific role or position, often as a result of planned succession or replacement.

Advantages

Benefits or favorable factors that contribute to success or achieving a goal.

Economic Issue

A problem or situation related to the economy that affects individuals, businesses, or governments.