If the Economy Is Operating on the Positively Sloped Range

question 11

Multiple Choice

If the economy is operating on the positively sloped range of the short-run aggregate supply curve,fiscal policy that increases total spending

• A) lowers total real output and raises the price level.
• B) promotes increased employment with higher price levels.
• C) shifts the aggregate supply curve to the right, increasing the price level.
• D) raises total real output and lowers the price level.
• E) shifts the aggregate demand curve to the left.

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Definitions:

Ultimate Consumer

The final user of a product or service who does not plan to resell it.

Intermediaries

Entities that act as middlemen in the distribution process between producers and consumers, such as wholesalers and retailers.

Producer

An individual or organization that creates goods or services for sale to consumers or other businesses.

Marketing Channel

A set of practices or activities necessary to transfer the ownership of goods, and to move goods from the point of production to the point of consumption.