Suppose We Observe Rising Nominal GDP, a Rising Price Level

question 280

Multiple Choice

Suppose we observe rising nominal GDP, a rising price level, and constant unemployment as a result of an increase in aggregate demand. We would conclude that the aggregate supply curve is

• A) upward sloping.
• B) downward sloping.
• C) vertical.
• D) horizontal.

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Definitions:

Wind

Air in motion relative to the surface of the Earth, ranging from gentle breezes to powerful gusts and storms, caused by the uneven heating of the Earth's surface.

Hundred-mile Diet

A lifestyle choice to consume only foods grown or produced within a hundred miles of one's residence, aiming to support local economies and reduce environmental impact.

World Population

The total number of humans currently living on the planet, which as of my last update, was approaching 8 billion.

Increase

A rise in the quantity, size, or extent of something.