In the Long Run,an Increase in Aggregate Demand

question 18

Multiple Choice

In the long run,an increase in aggregate demand

• A)increases the price level and real output,but the effect on the price level is larger
• B)increases the price level and real output,but the effect on output is larger
• C)affects only real output
• D)affects only the price level
• E)has no effect at all

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, which can provide insight into the properties of the population from which the sample was drawn.

Freshman Class

The group of students who are in their first year of secondary or higher education at a particular institution.

Usable Lifetime

The period during which a product or component is expected to perform its intended function satisfactorily under normal usage conditions.

K-Mart

A retail chain that was once one of the largest in the United States, offering a wide range of products from clothing to home goods.