Suppose Aggregate Demand Increases by More Than Expected

question 75

Multiple Choice

Suppose aggregate demand increases by more than expected.Which of the following describes what occurs?

• 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)All of the above.

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Definitions:

Presbyopia

A condition associated with aging where the eye loses its ability to focus on close objects, commonly occurring after age 40.

Presbycusis

Age-related hearing loss, gradually occurring in individuals as they grow older, affecting the ability to hear higher frequencies.

Arthritis

A term for conditions that involve inflammation of the joints, leading to pain, stiffness, and decreased mobility.

Myopia

A vision condition characterized by difficulty seeing distant objects clearly, often referred to as nearsightedness.