Since the End of World War II,the U

question 46

Multiple Choice

Since the end of World War II,the U.S.has almost always had rising prices and an upward trend in real GDP.To explain this

• A)it is only necessary that long-run aggregate supply shifts right over time.
• B)it is only necessary that aggregate demand shifts right over time.
• C)both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther.
• D)None of the above cases would produce rising prices and growing real GDP over time.

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Definitions:

Market Power

Refers to the ability of a company to influence the price and production levels in a market due to its size or lack of competition.

Antitrust Laws

Legislation to promote fair competition for the benefit of consumers, by regulating anti-competitive conduct by companies.

Conglomerate Merger

A type of merger between companies that operate in entirely different industries.

Product Extension

A marketing strategy where an existing product is introduced to a new market segment or modified to appeal to a broader audience.