When Aggregate Demand Increases,what Happens to Prices and Employment

question 73

Multiple Choice

When aggregate demand increases,what happens to prices and employment?

• A) Prices will fall and unemployment will rise.
• B) Prices and unemployment fall.
• C) Prices and unemployment rise.
• D) Prices will rise and unemployment will fall.

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Definitions:

Consumer Credit Contract

A legal agreement between a borrower and a lender in which the borrower receives something of value now and agrees to repay the lender at a future date, usually with interest, under specified conditions.

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Entitlements or privileges legally guaranteed to individuals or entities, underpinning their ability to perform or refrain from certain actions.

Negotiable Instrument

A signed document that promises payment to a specified person or assignee.

Unconditional Promise

A firm commitment or pledge not subject to any conditions or contingencies.