If Macroeconomic Policy Expands Aggregate Demand, Unemployment and Inflation Will

question 19

True/False

If macroeconomic policy expands aggregate demand, unemployment and inflation will both decline in the short run.

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Definitions:

Consumer Surplus

The difference between the highest price a consumer is willing to pay and the actual price they pay in the market.

Market Demand

The total amount of a product or service that consumers in a market are willing and able to purchase at a given price level in a given time period.

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the price they actually pay.

Consumer Surplus

The contrast between the fee consumers are inclined to pay for a good or service and the fee they ultimately pay.