If Aggregate Demand Increases, Thereby Leading to an Increase in Real

question 108

Multiple Choice

If aggregate demand increases, thereby leading to an increase in real GDP and inflation, there is a

• A) movement downward along the short-run Phillips curve.
• B) movement upward along the short-run Phillips curve.
• C) rightward shift in the short-run Phillips curve.
• D) leftward shift in the short-run Phillips curve.
• E) neither a movement along nor a shift in the short-run Phillips curve.

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Definitions:

Borne

The bearing or enduring of costs, responsibilities, or consequences by an entity, often in the context of who ultimately pays for or suffers from economic decisions.

Progressive

A political and social philosophy advocating for reforms and innovations aimed at addressing inequalities and improving the welfare of the population.

Relatively More

A comparative term indicating that something is greater in amount, quantity, or degree when compared with another thing.

Living Standards

refer to the quality and quantity of goods and services available to people, and the way these goods and services are distributed within a population.