Other Things Constant, an Increase in Resource Prices Will

question 142

Multiple Choice

Other things constant, an increase in resource prices will

• A) increase aggregate demand.
• B) decrease aggregate demand.
• C) decrease short-run aggregate supply.
• D) increase short-run aggregate supply.

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Definitions:

Fixed Rate

A fixed rate refers to an interest rate for a loan or mortgage that remains constant over the term of the loan.

Variable Rate

An interest rate which can change over the period of the loan, credit, or investment depending on market conditions.

Investment Account

An account held at a financial institution that holds securities, cash, and other assets for investment purposes.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the company's profit.