An Unexpected Increase in Aggregate Demand Typically Causes

question 110

Multiple Choice

An unexpected increase in aggregate demand typically causes

• A) frictional unemployment to increase but structural unemployment to decrease.
• B) the price level to increase but has no effect on the unemployment rate.
• C) the price level to increase and the unemployment rate to fall.
• D) the price level to increase and the unemployment rate to increase.

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Endorsement

A signature or statement of support for a policy, idea, or candidate, or in the context of financial instruments, the act of signing over rights to another party.

Digital Cash

Money stored electronically and used in place of physical currency.

Electronic Funds

Money that is moved electronically from one bank account to another.