In the Intermediate Range of the Aggregate Supply Curve, If

question 63

Multiple Choice

In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following is most likely to occur?

• A) The price level and real GDP will both rise.
• B) The price level will not change, but real GDP will increase.
• C) The price level will rise, but real GDP will not change.
• D) Both the price level and real GDP will not change.

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Definitions:

Economic Part Period

A method in inventory management that determines the optimal order size by balancing order costs against holding costs over time.

Time Bucket

A specific period used in planning and scheduling processes to aggregate demand, supply, and other planning data.

Operations Splitting

A technique in production scheduling where a single operation or job is split into smaller tasks or parts to be worked on simultaneously on different machines or work centers to reduce completion time.

MRP

Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.