When the Aggregate Demand Curve Shifts Rightward, the Price Level

question 42

Multiple Choice

When the aggregate demand curve shifts rightward, the price level ________ and the unemployment rate ________.

• A) decreases; decreases
• B) increases; decreases
• C) decreases; increases
• D) increases; increases
• E) does not change; does not change

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Definitions:

Employment Situation

The current status of the job market, including levels of employment, unemployment, and the types of jobs available.

Canadian Human Rights Act

Legislation in Canada that prohibits discrimination on the basis of race, national or ethnic origin, color, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability, and conviction for an offense for which a pardon has been granted.

Mental Ability

The capacity of an individual to perform cognitive tasks, solve problems, and adapt to new situations.

Early Job Satisfaction

The level of contentment employees feel about their job and work environment shortly after beginning a new position.