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

---

Definitions:

Muscle Mass

The amount of muscle tissue in the body, typically increased through physical activity and important for overall health and metabolic function.

Middle Childhood

A developmental stage that typically ranges from about 6 to 12 years of age, marked by advances in cognitive, social, and physical development.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act and is a facet of emotional intelligence.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, decision making, and regulating social behavior.