If There Is an Unanticipated Increase in Aggregate Demand,which of the Following

question 28

Multiple Choice

If there is an unanticipated increase in aggregate demand,which of the following is most likely to occur?

• A)an increase in the price level (inflation)
• B)an increase in the rate of unemployment
• C)a reduction in the growth rate of real GDP
• D)a decrease in LRAS to restore full employment

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Definitions:

Social Withdrawal

The act of avoiding social interactions and activities, often as a response to anxiety, depression, or other emotional distress.

Obsessive-Compulsive Behaviors

Actions that are driven by obsessive thoughts, leading to repetitive, compulsive acts aimed at reducing anxiety.

Psychosurgery

A type of brain surgery, such as a lobotomy, used historically to treat mental disorders but now rarely performed and considered controversial.

Psychological Disorders

Patterns of behavioral, cognitive, emotional, or physical symptoms that lead to distress, disability, or impaired functioning.