In the Short Run in Periods of Low Inflation, an Increase

question 61

Multiple Choice

In the short run in periods of low inflation, an increase in aggregate demand from a position of full employment leads to:

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

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Definitions:

Soto School

A school of Zen Buddhism that emphasizes meditation and the practice of zazen as a means to enlightenment, founded by Dogen in Japan.

Zen Buddhism

A form of Buddhism that emphasizes meditation and intuition rather than ritual worship or study of scriptures.

Hasegawa Tohaku

A prominent Japanese painter of the 16th century, famed for his ink paintings, screens, and contributions to the development of the Hasegawa school of painting.

Pine Forest

A large area densely populated with pine trees, which can provide resources like timber, resin, and serve as important ecological habitats.