If Factor Prices Remain Constant, an Increase in Aggregate Demand

question 56

Multiple Choice

If factor prices remain constant, an increase in aggregate demand

• A)increases the price level and increases real GDP.
• B)increases the price level and decreases real GDP.
• C)decreases the price level and increases real GDP.
• D)decreases the price level and decreases real GDP.
• E)increases the price level, and leaves real GDP unchanged.

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Definitions:

Long-Time Perspective

An approach that focuses on long-term outcomes and goals rather than immediate or short-term results.

Same Job

A position or role within an organization or field that has identical responsibilities, tasks, and requirements as another.

Different Definitions

This term alludes to the concept that the meaning or interpretation of concepts can vary based on context, perspective, or usage.

Inevitable

A situation or event that is certain to happen and cannot be avoided or prevented.