An Increase in Aggregate Demand Will Have the Greatest Short-Run

question 162

Multiple Choice

An increase in aggregate demand will have the greatest short-run effect on real output if the

• A)aggregate demand curve is horizontal
• B)aggregate demand curve is vertical
• C)aggregate demand curve is horizontal and the short-run aggregate supply curve is vertical
• D)short-run aggregate supply curve is vertical
• E)short-run aggregate supply curve is horizontal

---

Definitions:

Discrimination

The unfair or biased treatment of diverse groups of individuals or objects, particularly based on race, age, or gender.

Prejudice

A preconceived opinion or bias, often negative, towards individuals or groups based on their characteristics, such as race, gender, or religion, without factual justification.

Aggressive Behavior

Actions intended to cause harm or pain to others, ranging from verbal abuse to physical violence.

Fundamental Attribution Error

The tendency to overestimate the role of personal traits and underestimate the influence of situational factors when explaining other people's behavior.