An Increase in Aggregate Demand Is Beneficial in the Short

question 166

Multiple Choice

An increase in aggregate demand is beneficial in the short run because ________,but harmful in the long run because ________.

• A) output decreases; the unemployment rate falls
• B) the unemployment rate falls; the price level rises
• C) wages decrease; wages increase
• D) real wealth decreases; real wealth increases
• E) wages increase; the unemployment rate rises

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Definitions:

Communes

Social groups living together with shared resources and responsibilities, often with a common ideological or lifestyle foundation.

Organizational Culture

The shared values, beliefs, and norms that influence the way employees think, feel, and behave in an organization.

"Right Way"

A term that implies a belief in an absolute, most effective method or approach to do something.

Shared Mental Models

The common understanding or perceptions held by team members regarding tasks, procedures, or situations within a team or organization.