Assume That the Aggregate Demand Increases While the Short-Run Aggregate

question 102

Multiple Choice

Assume that the aggregate demand increases while the short-run aggregate supply decreases.The result is a(n) :

• A)increase in both equilibrium real GDP and the price level.
• B)decrease in equilibrium real GDP and an increase in the price level.
• C)decrease in both equilibrium real GDP and the price level.
• D)decrease in equilibrium real GDP, while the price level remains fixed.
• E)increase in the price level, while the change in equilibrium real GDP is ambiguous.

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Definitions:

Verbal Warnings

The first step in most progressive disciplinary programs are cautions conveyed orally to the employee.

Employee Suspension

A temporary removal of an employee from their position, typically as a disciplinary action.

Distributive Justice

Refers to perceptions that the outcomes a person faces are fair when compared to the outcomes faced by others.

Overtime

Additional hours worked beyond the standard working schedule, often compensated at a higher pay rate.