A Simultaneous Rise in Aggregate Demand and Fall in Short-Run

question 8

Multiple Choice

A simultaneous rise in aggregate demand and fall in short-run aggregate supply will definitely

• A) raise the price level,but there is not enough information to know how Real GDP will change.
• B) lower Real GDP,but there is not enough information to know how the price level will change.
• C) raise the price level and Real GDP.
• D) raise Real GDP,but there is not enough information to know how the price level will change.
• E) raise the price level and lower Real GDP.

---

Definitions:

Football Games

Organized sporting events involving two teams playing football (soccer in some countries) under a set of rules to score goals against each other.

Total Benefit

The complete gain or satisfaction a person receives from consuming a good or service.

Economic Assumption

A foundational concept in economics that simplifies analysis by presuming conditions like rational behavior, market equilibrium, and fixed resources.

Marginal Benefit

The additional satisfaction or utility obtained from consuming or producing one more unit of a good or service.