When Aggregate Demand Increases, All of the Following Result Except

question 33

Multiple Choice

When aggregate demand increases, all of the following result except:

• A) equilibrium level of real GDP increases
• B) unemployment decreases
• C) the price level increases
• D) cost-push inflation results
• E) none -10 all of these result when aggregate demand increases

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Definitions:

Production Costs

The total expense incurred in manufacturing a product or providing a service, including materials, labor, and overhead costs.

Manager Experience

The accumulated knowledge, skills, and competencies that an individual acquires through holding managerial roles over time.

Least Cost Combination

An economic principle where firms seek to minimize production costs by using the most efficient combination of resources.

Inputs

The resources used in the production process, such as labor, raw materials, and capital equipment.