An Increase in Aggregate Demand in the Economy Will Have

question 106

Multiple Choice

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

• A)The price level will fall and the level of GDP will rise.
• B)The price level will fall and the level of GDP will fall.
• C)The price level will rise and the level of GDP will fall.
• D)The price level will rise and the level of GDP will be unaffected.
• E)The price level will be unaffected and the level of GDP will rise.

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Definitions:

Deformed Objects

Items that have been altered from their original shape or structure through pressure or stress.

Thrust Fault

A type of reverse fault where the fault plane angle is low, causing older rock layers to move over younger ones.

Anticline

A type of fold in sedimentary layers that resembles an arch, with the oldest layers at the core of the fold.

Syncline

A fold in rock layers where the youngest layers are closer to the center of the structure, typically appearing as a trough.