An Unexpected Increase in Aggregate Demand Causes

question 129

Multiple Choice

An unexpected increase in aggregate demand causes

• A) the unemployment rate to fall, with no change in the price level.
• B) the price level to rise, but the duration of unemployment will remain constant, so the unemployment rate remains constant.
• C) simultaneously the price level to rise and the unemployment rate to fall.
• D) simultaneously the price level to fall and the unemployment rate to fall.

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Definitions:

Form

The shape, visual appearance, or configuration of an object, in various contexts it can refer to something structural, artistic, or abstract.

Metabolic Pathways

Networks of chemical reactions within cells that convert substances into other products, crucial for maintaining life's processes.

Photosynthesis

The process by which green plants, algae, and some bacteria transform light energy into chemical energy, converting carbon dioxide and water into glucose and releasing oxygen as a byproduct.

Cellular Respiration

The process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.