The Effect of an Increase in Aggregate Supply Is A(n)

question 48

Multiple Choice

The effect of an increase in aggregate supply is a(n) :

• A) increase in the general level of prices and a decrease in real output.
• B) increase in the general level of prices and an increase in real output.
• C) decrease in the general level of prices and a decrease in real output.
• D) decrease in the general level of prices and an increase in real output.

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Definitions:

Standard Deviation

A parameter that assesses the extent of difference or range within a batch of numerical values.

Risk-Averse Investor

An investor who prefers lower returns with known risks rather than higher returns with unknown risks.

Slope of the Budget Line

The rate at which one good can be traded for another, reflecting the relative prices of two goods.

Standard Deviation

An indicator that calculates how much a group of figures deviates or scatters from each other.