An Initial Increase in Aggregate Demand That Is NOT Followed

question 299

Multiple Choice

An initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in a long-run equilibrium with

• A) a higher price level but the same real GDP.
• B) a higher price level and an increased level of real GDP.
• C) the same price level and a lower level of real GDP.
• D) None of the above answers are correct.

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Definitions:

Redeemers

A political coalition in the Southern United States during the Reconstruction era, aiming to restore the pre-Civil War social order and suppress the rights of formerly enslaved people.

White South

Refers to the Southern states of the U.S and their culture, politics, and society, predominantly shaped by white Americans, especially during and after the period of slavery.

Corruption

Dishonest or fraudulent conduct by those in power, typically involving bribery or the abuse of power for personal gain.

Radical Reconstruction

The period after the American Civil War during which the federal government took direct control over the former Confederate states to enforce the rights of formerly enslaved people.