An Increase in the Price Level Will Shift the Aggregate

question 21

Multiple Choice

An increase in the price level will shift the aggregate demand curve:

• A)rightward.
• B)leftward.
• C)both.
• D)none of the above.

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Definitions:

45-Degree Line

In economics, often used in Keynesian cross diagrams to show points where aggregate output (or income) equals aggregate expenditure, indicating equilibrium.

Gini Coefficient

A measure of the inequality of a distribution, often used to measure income inequality, ranging from 0 (perfect equality) to 1 (perfect inequality).

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the proportion of total income earned by any given percentage of the population.

45-Degree Line

A reference in economics and finance, depicting a scenario where the value of goods and services produced is equal to the total demanded.