As Illustrated in an Aggregate Demand-Aggregate Supply Diagram,if the Economy

question 66

Multiple Choice

As illustrated in an aggregate demand-aggregate supply diagram,if the economy is at full employment and aggregate demand increased

• A)the price level and real GDP would decrease.
• B)the price level and real GDP would increase.
• C)the price level would increase and real GDP would remain unchanged.
• D)the price level would increase and real GDP would decrease.
• E)the price level would remain the same and real GDP would increase.

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Definitions:

Train Fares

The price charged to passengers for traveling on a train, which can vary based on distance, class, and timing.

Tariffs

Taxes imposed on imported goods, often used by governments to regulate trade by increasing the cost of foreign products to protect domestic industries.

Dealer Rebate

A financial incentive provided by manufacturers to dealers, typically after the sale of a product, to encourage stocking and selling their products.

Trade-in Allowance

The amount credited to the buyer by a seller when the buyer returns a product, typically used as part payment for a new purchase.