When Aggregate Demand Increases,what Happens to Prices and Employment

question 73

Multiple Choice

When aggregate demand increases,what happens to prices and employment?

• A) Prices will fall and unemployment will rise.
• B) Prices and unemployment fall.
• C) Prices and unemployment rise.
• D) Prices will rise and unemployment will fall.

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Definitions:

Restrictive Quotas

Limits set by governments on the quantity of goods that can be imported or exported to control market access.

Textile Products

Goods made by converting natural or synthetic fibers into yarn, which is then woven, knitted, or bonded to produce fabrics used in clothing, furnishings, and industrial applications.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, including tariffs, quotas, and embargoes, often to protect domestic industries.

American Employment

Refers to the state of having a job or occupation within the United States, often analyzed in terms of employment rates, job creation, and labor market trends.