An Increase in Aggregate Demand in the Long Run Will

question 106

Multiple Choice

An increase in aggregate demand in the long run will most likely result in:

• A)a decrease in price and output levels.
• B)an increase in price and output levels.
• C)an increase in the price level and a decrease in output.
• D)a decrease in the price level and an increase in output.
• E)an increase in the price level but no change in output.

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Definitions:

Mechanical Societies

Sociological concept referring to traditional, pre-industrial societies where social cohesion and integration come from a homogeneity of individuals, as opposed to the interdependence of differentiated roles.

Organic Societies

Societies characterized by complex interdependence of parts, akin to organisms, where differentiation of functions exists for the overall wellbeing.

Social Facts

Aspects of social life that exist outside of individuals, such as laws, norms, and values, that influence their behavior.

Social Conventions

Agreed-upon norms and practices that govern behavior within societies or groups.