Which of the Following Will Most Likely Occur as the Result

question 146

Multiple Choice

Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand that pushes output beyond long-run capacity?

• A) an increase in the natural rate of unemployment
• B) an increase in the real interest rate
• C) a decrease in the real interest rate
• D) a decrease in the general level of prices

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Definitions:

Sell Signals

Indications, based on technical analysis or other factors, suggesting that it might be an opportune time to sell a particular investment.

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Stock Prices

The present rate at which a corporation's stock share is available for purchase or sale on the market.

Small-Firm Effect

The small-firm effect refers to the historical trend where smaller firms, in terms of market capitalization, have achieved higher risk-adjusted returns than larger companies.