​ Along the Short-Run Aggregate Supply Curve (SRAS), an Increase

question 17

Multiple Choice

​ Along the short-run aggregate supply curve (SRAS) , an increase (rightward shift) in the aggregate demand curve will increase:

• A) ​both the price level and real GDP.
• B) real GDP without raising the price level.
• C) the price level without affecting real GDP.
• D) ​the price level but reduce real GDP.

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Definitions:

Net Sales

The total revenue from goods or services sold by a company, after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

The direct costs attributable to the production of the products sold by a company, including material and labor costs.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs.

Operating Cycle

The duration of time it takes for a business to turn its inventory into cash through sales.