When Aggregate Demand Increases

question 42

Multiple Choice

When aggregate demand increases,

• A)the price level is likely to rise as GDP rises.
• B)the price level is likely to fall as GDP rises.
• C)aggregate supply will shift to the right.
• D)aggregate supply will shift to the left.

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Definitions:

Exclusive Right

A privilege or license granted to an individual or company to be the sole seller or producer of a specific product in a certain market.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its acquisition.

Trade-In Allowance

The amount credited to the buyer by the seller when a buyer trades in an old item towards the purchase of a new item.

Accumulated Depreciation

The cumulative depreciation expense recorded for an asset from the time it was operational, thereby lowering its recorded value in the balance sheet.