Given the Aggregate Demand Curve, What Effects Will an Increase

question 15

Multiple Choice

Given the aggregate demand curve, what effects will an increase in the supply of a productive resource have on output and price level?  

• A) Output will increase, but the price level will remain the same. 
• B) The price level will increase, but output will remain the same. 
• C) The price level will decrease, and output will increase. 
• D) The price level will increase, and output will decrease.

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Definitions:

Diesel Fuel

A type of fuel derived from petroleum, used in diesel engines.

Gallons

A unit of volume for fluid measure equal to four quarts, used in the United States.

Minutes

A unit of time equal to sixty seconds or one-sixtieth of an hour.

Hours

A unit of time equal to 60 minutes.