Starting from Long-Run Equilibrium,an Increase in Aggregate Demand Increases ______

question 96

Multiple Choice

Starting from long-run equilibrium,an increase in aggregate demand increases ______ in the short run,but only increases ______ in the long run.

• A) output; prices
• B) prices; output
• C) short-run aggregate supply; long-run aggregate supply
• D) the money supply; the natural level of output

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Definitions:

Dividend Income

Earnings received by shareholders from the profits of a company, distributed according to the number of shares owned.

Noncontrolling Interest

A portion of the equity in a subsidiary not attributable, directly or indirectly, to the parent company.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenues.

Upstream Intra-Entity Profits

Profits realized from transactions between a parent company and its subsidiary, where the subsidiary sells to the parent.