An Increase in Aggregate Demand When the Economy Is Operating

question 192

Multiple Choice

An increase in aggregate demand when the economy is operating at full capacity is likely to result in

• A) an increase in both output and the overall price level.
• B) an increase in output but no increase in the overall price level.
• C) an increase in the overall price level but no increase in output.
• D) no increase in either output or the overall price level.

---

Definitions:

South Dakota

A state located in the Midwestern region of the United States, known for landmarks such as Mount Rushmore.

Dodge Owner's Demand

The specific desire for Dodge brand vehicles by consumers, influenced by preferences, income levels, and market conditions.

Buick Owner's Demand

The term Buick owner's demand could refer to the specific needs or desires that individuals who own Buick vehicles have regarding their car's maintenance, improvements, or accessories.

Gasoline

A volatile, flammable liquid derived from petroleum, commonly used as fuel in internal combustion engines.