An Economic Expansion Caused by a Shift in Aggregate Demand

question 41

Multiple Choice

An economic expansion caused by a shift in aggregate demand causes prices to

• A)rise in the short run,and rise even more in the long run.
• B)rise in the short run,and fall back to their original level in the long run.
• C)fall in the short run,and fall even more in the long run.
• D)fall in the short run,and rise back to their original level in the long run.

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Definitions:

American Society

A complex social system encompassing the diverse cultural, economic, political, and social structures within the United States.

Status Quo

The existing state of affairs at a particular time, especially concerning social or political issues.

Public Assistance

Government programs designed to provide financial aid to individuals or families in need, often targeting the poor, elderly, disabled, and unemployed.

New Deal

An assortment of programs, infrastructure projects, economic reforms, and policies put into action by President Franklin D. Roosevelt in the 1930s in the United States, designed to facilitate recovery from the Great Depression.