What Must the Government Do in Order to Maintain Real

question 92

Multiple Choice

What must the government do in order to maintain real output above its natural level for a sustained period of time?

• A)Bring about repeated increases in the level of aggregate demand.
• B)Bring about a one-shot permanent increase in aggregate demand.
• C)Increase aggregate demand and then maintain the new level of demand.
• D)Shift the aggregate demand curve to the right and then allow aggregate demand to slowly decrease.

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Definitions:

Patented Prescription Drug

A medication that is protected by a patent, giving its manufacturer the exclusive right to produce and sell the drug for a certain period.

Lack Of Substitutes

A market condition where there are no close alternatives to a product, leading to higher consumer dependency on that product.

Monopoly

An industry controlled by a monopolist.

Consumers' Dislike

The negative reactions or attitudes consumers have towards a product or service.