In the Aggregate Demand-Aggregate Supply Model, If Entrepreneurs Become Convinced

question 19

Multiple Choice

In the aggregate demand-aggregate supply model, if entrepreneurs become convinced that future profitability of capital has increased,

• A)current output will fall, but the price level will rise.
• B)current output will rise, but the price level will fall.
• C)current output and the price level will both rise.
• D)current output and the price level will both fall.

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Definitions:

Antitrust Action

Legal proceedings or actions taken by government regulators or private parties to prevent or remedy anti-competitive practices, monopolies, or other violations of antitrust laws.

Discounted Rate

A reduced price or fee, lower than the standard amount.

Violation Of

The act of breaking, infringing, or not complying with a law, rule, or agreement.

Pollution Control Devices

Tools or systems designed to reduce or eliminate the emission of pollutants into the environment from various sources.