In the Short Run, an Increase in Aggregate Demand

question 119

Multiple Choice

In the short run, an increase in aggregate demand

• A) lowers the price level and decreases real GDP.
• B) lowers the price level and increases real GDP.
• C) raises the price level and increases real GDP.
• D) raises the price level and decreases real GDP.

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Definitions:

Crowd Action

Collective behavior by people gathered in a public space, often spontaneous and motivated by a common goal or grievance.

Tea Act

A 1773 act by the British Parliament granting the East India Company the right to sell tea to the American colonies free of the taxes that colonial tea sellers had to pay, leading to the Boston Tea Party.

Boston Tea Party

A protest by American colonists in 1773 against British taxation, in which they boarded British ships and dumped tea into Boston Harbor.

Patriot Behavior

The actions and attitudes of individuals who intensely support and defend their country, often associated with the American Revolutionaries who fought for independence from Britain.