Economic Growth Will Be Associated with a Constant Price Level

question 40

Multiple Choice

Economic growth will be associated with a constant price level when

• A) the increase in aggregate demand exactly equals the increase in long-run aggregate supply.
• B) the increase in aggregate demand is more than the increase in long-run aggregate supply.
• C) the increase in aggregate demand is less than the increase in long-run aggregate supply.
• D) the increase in aggregate demand is accompanied by a reduction in short-run aggregate supply.

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Definitions:

Stock

A type of security that signifies ownership in a corporation, representing a claim on part of the corporation's assets and profits.

Domestic Corporation

A corporation is deemed a domestic corporation in the state that has granted its charter. If the corporation does business in other states, it is considered a foreign corporation in the other states.

Foreign Corporation

A business entity that is registered and operates in a jurisdiction or country different from where it was originally incorporated.

Incorporated

The process by which a business is legally declared a corporate entity, separate from its owners.