In the Long Run, an Increase in Aggregate Demand from a Position

question 98

Multiple Choice

In the long run, an increase in aggregate demand from a position of full employment leads to:

• A) higher prices and higher output.
• B) higher prices and the same output.
• C) higher output and lower prices.
• D) higher output and higher unemployment.

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Definitions:

Imperial Presidency

describes a U.S. presidency that operates without effective checks and balances from the other branches of government, typically seen during periods of war or national emergency, leading to an expansion of executive power.

People's Republic

A type of state or country that is officially considered a republic and claims to be governed by the people, often used by communist states.

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, comprising Russia and several other republics, and was a primary player in the Cold War.

War Powers Act

A 1973 United States federal law that aims to balance the president's power to commit the country to armed conflict without Congress's consent.