Given the Aggregate Demand Curve, an Increase in the Supply

question 197

Multiple Choice

Given the aggregate demand curve, an increase in the supply of a productive resource will _____

• A) increase the output level but leave the price level unchanged.
• B) decrease both the output and price levels.
• C) increase the price level and decrease the output level.
• D) decrease the price level and increase the output level.
• E) increase the price level but leave the output level unchanged.

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Definitions:

New Capital

Funds or assets newly invested in a business or company for the purpose of expansion, development, or improvement of operations.

Securities And Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws, regulating the securities industry, the nation's stock and options exchanges, and other related activities and organizations.

Section 10(b)

A provision of the Securities Exchange Act of 1934, dealing with securities fraud and providing for the Securities and Exchange Commission to enact rules to prevent such practices.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934 that addresses fraud and misrepresentation in securities trading, prohibiting deceptive practices.