An Increase in Aggregate Demand Will Have the Following Effect

question 97

Multiple Choice

An increase in aggregate demand will have the following effect on potential output:

• A)Potential output will increase
• B)Potential output will decrease
• C)Potential output will increase at first and then decrease
• D)There won't be a change in potential output from an increase in aggregate demand

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Definitions:

Gustatory Receptors

Sensory receptors located on the tongue that detect taste.

Olfactory Receptors

Specialized nerve cells located in the nasal cavity that are responsible for detecting odors and sending information to the brain for processing.

Chemoreceptors

Sensory receptor cells that respond to chemical stimuli, involved in senses like taste and smell and the regulation of breathing.

Cutaneous Receptor

Sensory receptors found in the skin that respond to various stimuli such as touch, pressure, temperature, and pain.