If Aggregate Demand Increases and as a Result Equilibrium Real

question 89

Multiple Choice

If aggregate demand increases and as a result equilibrium real GDP and employment increase but the price level remains unchanged,we can assume that the aggregate demand curve

• A)is vertical.
• B)is horizontal.
• C)intersects a vertical segment of the aggregate supply curve.
• D)intersects a horizontal segment of the aggregate supply curve.
• E)intersects an upward-sloping segment of the aggregate supply curve.

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Definitions:

Energy Efficiency

The goal of using less energy to provide the same level of energy service, such as lighting, heating, or cooling.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.

Imported Energy

Energy that is produced outside of a region or country and then transported into that area for use.

Source Of Ethanol

Ethanol, a biofuel, is primarily produced through the fermentation of sugars by yeast, obtained from crops like sugarcane, corn, and wheat.