Suppose Aggregate Demand Increases by More Than Expected

question 33

Multiple Choice

Suppose aggregate demand increases by more than expected. Which of the following does not occur?

• A)Real GDP is greater than potential GDP.
• B)The price level rises.
• C)Unemployment falls.
• D)The natural unemployment rate does not change.
• E)Stagflation occurs.

---

Definitions:

Violent Crime

Acts of crime that involve force or the threat of force against others, including murder, assault, and robbery.

Potential For Violence

The likelihood or capacity of a person or situation to result in physical harm or aggressive behavior.

Thrill Of Violence

The excitement or rush some individuals feel when engaging in or witnessing acts of violence.