If Society Wants Aggregate Demand to Increase Without Changes in the Price

question 77

Multiple Choice

If society wants aggregate demand to increase without changes in the price level,then there must be

• A)a gap between full employment and the current level of real national income and an increase in autonomous spending.
• B)an increase in autonomous spending combined with an increase in the marginal propensity to save.
• C)an increase in autonomous saving so that autonomous investment spending can increase.
• D)an increase in autonomous spending and a horizontal short-run aggregate supply curve.

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Definitions:

Credit Periods

The duration during which a buyer can pay the due amount to the seller without incurring any interest.

Product Cost

The total cost incurred to produce a product or deliver a service, including materials, labor, and overhead expenses.

Credit Periods

Refers to the specific lengths of time granted by suppliers to customers in which they can pay for goods or services without incurring any interest charges.

Cash Discount

A reduction in the invoice amount by a seller if payment is made within a specified period.