In the Short Run,when There Is an Increase in Aggregate

question 246

Multiple Choice

In the short run,when there is an increase in aggregate demand,the aggregate price level will _____ and the aggregate output level will _____.

• A) rise;fall
• B) rise;rise
• C) fall;rise
• D) fall;fall

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Definitions:

New Capital

Funds or assets newly invested in a business or company for the purpose of expansion, development, or improvement of operations.

Securities And Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws, regulating the securities industry, the nation's stock and options exchanges, and other related activities and organizations.

Section 10(b)

A provision of the Securities Exchange Act of 1934, dealing with securities fraud and providing for the Securities and Exchange Commission to enact rules to prevent such practices.

Rule 10b-5

A regulation under the U.S. Securities Exchange Act of 1934 that addresses fraud and misrepresentation in securities trading, prohibiting deceptive practices.