Figure 10-7 ​ ​

question 201

Multiple Choice

Figure 10-7
​ ​
-If an economy is growing, but experiences no inflation, this means

• A)aggregate demand increased, but aggregate supply did not.
• B)aggregate supply decreased, but aggregate demand did not.
• C)aggregate demand and aggregate supply increased by the same amount.
• D)aggregate demand and aggregate supply decreased by the same amount.

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Definitions:

Unlimited Resources

Access to an infinite amount of materials or assets without any constraints.

Human Wants

The desires and needs of individuals for goods, services, and other intangibles that lead to satisfaction.

Opportunity Cost

The toll taken for not picking the second highest preference when decisions are formulated.

Tax Cut

A reduction in the amount of taxes imposed by the government, which can affect individuals, corporations, or specific sectors.