An Unexpected Increase in Aggregate Demand Typically Causes

question 110

Multiple Choice

An unexpected increase in aggregate demand typically causes

• A) frictional unemployment to increase but structural unemployment to decrease.
• B) the price level to increase but has no effect on the unemployment rate.
• C) the price level to increase and the unemployment rate to fall.
• D) the price level to increase and the unemployment rate to increase.

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Definitions:

Federal Arbitration Act

A United States federal statute that provides for the enforcement of arbitration agreements within the context of federal and interstate matters.

Final and Definite Award

In arbitration, a conclusive decision given by an arbitrator that resolves the dispute and is binding on all parties.

Arbitrator's Bias

A situation in which an arbitrator, who is supposed to act as an impartial third-party decision-maker in a dispute resolution process, shows unfair bias towards one of the parties.

Counterclaim

A claim made by the defendant against the plaintiff that is filed along with the defendant’s answer.