If Aggregate Demand Increases And,as a Result,the Price Level Increases

question 92

Multiple Choice

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

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

---

Definitions:

Installment Contract

A contract that requires payments to be made in regular intervals over a period in exchange for goods or services.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the costs of completion, disposal, and transportation.

Repossessed

The act of taking back an asset, typically used when a borrower fails to make payments on a secured loan.

Deferred Gross Profit

Profit on installment sales that is not recognized immediately but deferred and recognized as payment is received.