Given a fiXed Upsloping AS Curve, a Rightward Shift of the AD

question 192

Multiple Choice

Given a fixed upsloping AS curve, a rightward shift of the AD curve will

• A) cause cost-push inflation.
• B) increase real output but not the price level.
• C) increase the price level but not real output.
• D) increase both the price level and real output.

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Definitions:

International Specialization

The economic strategy of a country focusing its resources on producing goods and services it can produce most efficiently for exchange with others.

World Price

The international market price of a good or service, influenced by global supply and demand.

Diseconomies Of Scale

refers to a situation where, as a company or business expands, its production costs increase, leading to a decrease in efficiency.

Resource Endowments

The natural resources, capital, and other economic assets that a country possesses, impacting its economic potential.