When Aggregate Demand Increases,what Happens to Prices and Employment

question 73

Multiple Choice

When aggregate demand increases,what happens to prices and employment?

• A) Prices will fall and unemployment will rise.
• B) Prices and unemployment fall.
• C) Prices and unemployment rise.
• D) Prices will rise and unemployment will fall.

---

Definitions:

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation.

Depreciation

A method of accounting that distributes the expense of a physical asset across its lifespan.

Fixed Asset

Long-term tangible property that a firm owns and uses in producing its income and is not expected to be consumed or converted into cash in short-term.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the open market.