An Increase in Aggregate Demand in the Economy Will Have

question 106

Multiple Choice

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

• A)The price level will fall and the level of GDP will rise.
• B)The price level will fall and the level of GDP will fall.
• C)The price level will rise and the level of GDP will fall.
• D)The price level will rise and the level of GDP will be unaffected.
• E)The price level will be unaffected and the level of GDP will rise.

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Definitions:

Aluminum Manufacturer

A company engaged in the production and distribution of aluminum products, often involving the extraction and refinement of bauxite ore, as well as the casting and rolling of aluminum.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against risk and financial loss.

Medical Clinic

A healthcare facility primarily focused on the care of outpatients, offering diagnostic and treatment services.

Porter's Five Forces Model

A framework developed by Michael E. Porter used to analyze an industry's structure and competition, focusing on five competitive forces.