Figure 11.3: -Using Figure 11.3,a Shift in Aggregate Demand from AD₂ to from AD₂

question 132

Multiple Choice

Figure 11.3:
-Using Figure 11.3,a shift in aggregate demand from AD₂ to AD₁,ceteris paribus,is most likely to cause:

• A) An increase in real output and an increase in the price level.
• B) An increase in real output and a decrease in the price level.
• C) A decrease in real output and an increase in the price level.
• D) A decrease in real output and a decrease in the price level.

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Definitions:

Employee

An individual who works part-time or full-time under a contract of employment, contributing labor and expertise to an employer.

Employer

An individual or organization that hires and pays people to work.

Wages Expense

The total cost incurred by an organization to pay salaries and wages to its employees for a specific period.

Accrued Liability

A liability that has been incurred, is recognized on the balance sheet, and has not yet been paid.