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:

Majority Shareholder

An entity or individual that owns more than half of the shares in a company, giving them significant control over the company's decisions.

Duty

An obligation, often legal or moral, that an individual or entity is bound to fulfill towards others.

Securities And Exchange Commission

A U.S. government agency responsible for enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.

Shareholder

An individual or entity that owns shares in a corporation, thereby holding a portion of the corporation's equity and potentially having voting rights.