The Short-Run Effects from an Increase in Aggregate Demand Will

question 33

Multiple Choice

The short-run effects from an increase in aggregate demand will include:

• A)An increase in potential output
• B)An increase in the current inflation rate
• C)A decrease in current output
• D)A recessionary gap

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Definitions:

Government

The organization, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.

Poverty Rate

The ratio of the number of people whose income falls below the poverty line, taking into account their standard of living or the cost of living in a country.

Standard Of Living

Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.