An Increase in Aggregate Demand in the Long Run Will

question 106

Multiple Choice

An increase in aggregate demand in the long run will most likely result in:

• A)a decrease in price and output levels.
• B)an increase in price and output levels.
• C)an increase in the price level and a decrease in output.
• D)a decrease in the price level and an increase in output.
• E)an increase in the price level but no change in output.

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Definitions:

Positive Attitudes

Mental states or dispositions characterized by optimism and a positive outlook towards situations, events, or people.

Mechanical Device

Any piece of machinery or tool that performs a task using moving parts powered in various ways, including manually, electrically, or through hydraulic means.

Finger

A digit on the hand, of which humans typically have five on each hand, used for manipulative and sensory purposes.

Pressure

The force per unit area applied on a surface or the feeling of stress or urgency induced by external or internal factors.