We Could Explain Continued Increases in Both Output and the Price

question 81

True/False

We could explain continued increases in both output and the price level by supposing that only aggregate demand shifted right over time.

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Definitions:

Unemployment

Unemployment is the situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Aggregate Demand

The complete need for every product and service within an economy at various price points, throughout a particular timeframe.

Aggregate Supply

The sum of all goods and services created in an economy, priced at a certain level, over a specific period.

Classical Dichotomy

The theoretical separation of real and nominal variables in economics, suggesting that nominal variables (like the money supply) do not affect real variables (like real GDP).