An Increase in Aggregate Supply Will Cause the Price Level

question 144

Multiple Choice

An increase in aggregate supply will cause the price level to:

• A) rise and GDP to rise
• B) rise and GDP to fall.
• C) rise and the unemployment rate to fall.
• D) fall and GDP to rise.
• E) fall and the unemployment rate to rise.

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Definitions:

Carried Forward

The process of taking unused tax credits or losses and applying them to offset tax liabilities in future periods.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thereby avoiding double taxation on dividends.

Elects

The act of choosing or deciding on a particular option or course of action, often used in legal and financial contexts.

Terminate

To bring to an end; this can relate to employment, contracts, or services, among others.