Which of the Following Will Most Likely Occur as the Result

question 176

Multiple Choice

Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand?

• A) an increase in output and a move to a higher price level
• B) an increase in prices and a long-run increase in output
• C) an increase in long-run aggregate supply (LRAS shifts to the right)
• D) a decrease in the natural rate of unemployment

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Definitions:

Lead Away

To guide or direct someone or something away from a certain place.

Middle

The central point or part of something.

Impulses

Electrical or chemical signals transmitted through neurons that facilitate communication within the brain and between the brain and the rest of the body.

Center

A point of convergence or a central focal point.