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:

Taxable Income

The amount of a person's or organization's income used to determine how much tax is owed to the government.

For AGI Deduction

refers to deductions that are made from gross income to determine the adjusted gross income on a tax return.

Early Withdrawal Penalty

A fee imposed for withdrawing funds from certain retirement accounts or investments before a specified age or period.

1040A

A simplified version of the IRS Form 1040 used for personal income tax filing, now obsolete and replaced with the redesigned Form 1040.