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:

Treasure Hunt

A game or activity where players search for hidden objects or places by following a series of clues or solving puzzles.

Puzzles

Games, toys, or problems designed to test ingenuity or knowledge, requiring the solver to put pieces together or solve a challenging question.

Onlooker Play

This is a stage of play where children watch others play but do not join in, often serving as a way for them to learn about social interactions and the rules of games.

Empathy

The ability to understand and share the feelings of another person, fostering a sense of compassion and connection.