If Aggregate Demand Is $2,000 Billion and Aggregate Supply Is

question 49

True/False

If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion, the price level will rise.

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Definitions:

Commercial Banks

Financial institutions that provide a range of services, including accepting deposits, providing loans, and offering other financial products.

Bank Failures

The occurrence when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.

Federal Reserve System

The central bank of the United States, responsible for monetary policy, financial regulation, and stability of the financial system.

Great Depression

A severe worldwide economic downturn that lasted throughout the 1930s, marked by widespread unemployment, deflation, and a significant decline in economic output.