Exhibit 10-7 Aggregate Supply and Demand Curves in Exhibit

question 122

Multiple Choice

Exhibit 10-7 Aggregate supply and demand curves In Exhibit 10-7, if aggregate demand increases from AD₁ to AD₂,

• A)output and prices will increase.
• B)output and prices will decrease.
• C)output alone will increase.
• D)prices alone will decrease.
• E)prices alone will increase.

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Definitions:

Main Tenets

Fundamental principles or beliefs that form the foundation of a system, theory, or philosophy.

Public Service

Services offered by the government to its citizens, often aiming to improve quality of life and welfare.

Productivity

The measure of how efficiently goods and services are produced, often evaluated by comparing output to input in a given time period.

Profitability

The degree to which a business or activity yields profit or financial gain.