In the Short Run, If Aggregate Demand Increases, What Happens

question 9

Multiple Choice

In the short run, if aggregate demand increases, what happens to output prices relative to input prices?

• A)They rise.
• B)They decline or stay the same.
• C)They may rise or decline.
• D)They do not change.

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Definitions:

Radical Equation

A mathematical equation that involves a radical, where the variable is inside a root, such as a square root or cube root.

Graphing Calculator

A handheld or software tool that plots graphs, solves equations, and performs other mathematical calculations.

Pythagorean Theorem

A fundamental relation in Euclidean geometry among the three sides of a right triangle, stating that the square of the hypotenuse is equal to the sum of the squares of the other two sides.

Radical Equation

An equation in which the variable is contained within a radical symbol or has a radical expression with the variable.