If Aggregate Demand Increases and Aggregate Supply Decreases, the Price

question 302

Multiple Choice

If aggregate demand increases and aggregate supply decreases, the price level

• A) will decrease, but real output may increase, decrease, or remain unchanged.
• B) will increase, but real output may increase, decrease, or remain unchanged.
• C) and real output will both increase.
• D) and real output will both decrease.

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Definitions:

Economic Role

The function or position an entity or individual plays within an economic system, influencing how resources are distributed and utilized.

Free Enterprise Economies

Systems where businesses operate with minimal government intervention, guided by the forces of supply and demand.

Economic Role

The function or position an entity (like an individual, company, or government) plays within an economy, influencing its structure and development.

Local Finance

Relates to the funding and financial management of local governments, including revenue generation, budgeting, and expenditure on public services at a local level.