According to Classical Macroeconomic Theory, an Increase in Aggregate Demand

question 42

Multiple Choice

According to classical macroeconomic theory, an increase in aggregate demand will _____ in the long run.

• A)only raise the inflation rate
• B)increase both output and the inflation rate
• C)only reduce the inflation rate
• D)decrease both output and the inflation

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Definitions:

External Auditory

Pertaining to the outer section of the ear canal leading to the eardrum.

Taste Buds

Small sensory organs on the tongue that are responsible for perceiving taste, including sweet, sour, bitter, salty, and umami flavors.

Blind Spot

An area in the visual field that is not detected by the eye, often due to the absence of light-detecting photoreceptor cells where the optic nerve enters the retina.

Sensory Receptors

Specialized cells or structures in the body that detect stimuli from the environment and convert them into neural signals.