Which of the Following Is an Effect of an Increase

question 28

Multiple Choice

Which of the following is an effect of an increase in the price level in an economy?

• A)The real value of dollar-denominated assets will fall.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium real gross domestic product will increase.
• D)There will be a downward movement along the aggregate demand curve of the economy.
• E)The aggregate demand curve of the economy will shift rightward.

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Definitions:

Contractual Right

A legally enforceable claim that arises from a contractual agreement between parties.

Financial Instrument

A tool representing a monetary contract between parties that can be traded, such as stocks, bonds, or derivatives.

Substance Over Form

The concept that transactions and their effects should be recorded and reported in a way that reflects their economic reality rather than merely their legal form.

Legal Form

The specific legal structure of an entity or agreement, which determines its legal responsibilities, rights, and the regulatory framework it operates within.