If Aggregate Demand Increases, Thereby Leading to an Increase in Real

question 14

Multiple Choice

If aggregate demand increases, thereby leading to an increase in real GDP and inflation, there is

• A) a leftward shift in the short-run Phillips curve.
• B) a movement downward along the short-run Phillips curve.
• C) a rightward shift in the short-run Phillips curve.
• D) a movement upward along the short-run Phillips curve.
• E) neither a movement along nor a shift in the short-run Phillips curve.

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate view of economic growth over time.

Environmental Costs

Expenses associated with the damage to the environment caused by a company's operations, including cleanup costs, fines, and the costs to comply with environmental regulations.

Qualitative Improvements

Enhancements to the characteristics, features, or performance of a product or service that increase its value to consumers.