Suppose There Was an Unexpected Increase in Aggregate Demand

question 281

Multiple Choice

Suppose there was an unexpected increase in aggregate demand. We would expect to observe

• A) frictional unemployment to increase.
• B) the duration of unemployment and the amount of unemployment to decrease.
• C) higher wages, with the duration of unemployment and the amount of unemployment unchanged.
• D) a decrease in aggregate demand.

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Definitions:

Contract Price

The price agreed upon by the contracting parties for the exchange of goods, services, or property as stipulated in their contract.

Punitive Nature

An aspect of legal judgments or actions intended to punish the wrongdoer, rather than simply to compensate for harm done.

UCC

Uniform Commercial Code, a standardized set of business and commercial laws that facilitate the fair conduct of transactions and dealings across state lines.

Statute of Limitations

A law that sets the maximum time the parties involved have to initiate legal proceedings from the date of an alleged offense.