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Ceteris Paribus,based on the Aggregate Supply Curve,if the Price Level

question 19

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Ceteris paribus,based on the aggregate supply curve,if the price level _______ the quantity of real output _______ increases.


Definitions:

Interest Rates

The percentage charged on borrowed money, or earned through investment, over a certain period of time.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Demand

The willingness and ability of consumers to purchase goods or services at a given price level.

Supply

The total amount of a good or service available for purchase at any given price level within a specific market.

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