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What is the effect on the multiplier when an increase in aggregate demand also causes the price level to rise?
Immediate Profits
Earnings realized in the short term, reflecting the current operations of a business rather than long-term investments.
Marginal Product
The additional output generated by employing one more unit of a particular input, such as labor or capital.
Wage Rate
The rate at which labor is compensated by employers, typically expressed per hour or year.
Short-run Production Function
A mathematical representation of the relationship between a firm's output and the amounts of inputs used, assuming some inputs are fixed.
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