If Society Wants Aggregate Demand to Increase Without Changes in the Price

question 65

Multiple Choice

If society wants aggregate demand to increase without changes in the price level, then there must be

• A) a gap between full employment and the current level of real GDP and an increase in autonomous spending.
• B) an increase in autonomous spending combined with an increase in the marginal propensity to save.
• C) an increase in autonomous saving so that autonomous investment spending can increase.
• D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.

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Definitions:

Clinicians

Healthcare professionals engaged in the direct care and treatment of patients, often within fields such as medicine, psychology, and nursing.

Assortative Mating

A mating pattern where individuals tend to select partners similar to themselves in physical traits, social status, or beliefs.

Genetic Load

The presence of unfavorable genetic mutations in a population, which can reduce the fitness and adaptive abilities of the population.

Conduct Problems

Behavioral issues in individuals, typically children or adolescents, that involve difficulty following social rules, norms, and laws.