If Aggregate Demand Increases in the Intermediate Range of the Aggregate

question 27

Multiple Choice

If aggregate demand increases in the intermediate range of the aggregate supply curve then the:

• A) price level rises and real GDP falls.
• B) price level rises and real GDP rises.
• C) price level falls and real GDP falls.
• D) price level falls and real GDP rises.

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Definitions:

Employee Motivation

The amount of enthusiasm, dedication, and innovation employees contribute to their roles in a corporation.

Herzberg

Refers to the two-factor theory by Frederick Herzberg, which posits that certain factors in the workplace result in job satisfaction, while others lead to dissatisfaction, hence differentiating between 'motivators' and 'hygiene factors'.

Taylor's Scientific

Refers to Taylor's Scientific Management Theory, emphasizing efficiency and productivity through the analysis and optimization of workflow.

Herzberg's Two-factor

A theory that suggests there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.