By Itself, an Increase in Aggregate Demand Increases GDP by the Least

question 209

Multiple Choice

By itself, an increase in aggregate demand increases GDP by the least amount in the

• A) Keynesian theory.
• B) monetarist theory.
• C) new Keynesian theory.
• D) real business cycle theory.

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Definitions:

Negative

In the context of charge, negative refers to an electrical charge of the same type carried by electrons.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding.

Polar Nature

A characteristic of molecules that have an uneven distribution of electron density, resulting in regions of partial positive and negative charge which makes them interact with other polar substances including water.

Attractive Forces

Forces that cause atoms, ions, or molecules to come together, and include various types of chemical bonds and intermolecular interactions.