________ Will Be Associated with a Constant Price Level When

question 87

Multiple Choice

________ will be associated with a constant price level when the increase in aggregate demand exactly equals the increase in long-run aggregate supply.

• A)Economic growth
• B)Economic stagnation
• C)Economic inflation
• D)Economic recession

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Definitions:

Supply

the total amount of a specific good or service that is available to consumers.

Inferior Good

A type of good for which demand decreases as the income of the individual increases, inversely related to income.

Normal Good

A good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.

Income Increases

A rise in the amount of money earned by individuals or households, often measured on an annual basis.