An Increase in Aggregate Demand in the Economy Will Have

question 99

Multiple Choice

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

• A)The price level will fall,and the level of GDP will rise.
• B)The price level will fall,and the level of GDP will fall.
• C)The price level will rise,and the level of GDP will fall.
• D)The price level will rise,and the level of GDP will be unaffected.

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Definitions:

Price Of Goods

The amount of money required to purchase a product or service, determined by factors like demand, supply, and production costs.

Business Magazine

A publication focusing on topics related to the business industry, including trends, analysis, and profiles of companies and leaders.

Consumer Publication

A magazine or other publication that offers information and advice on consumer products and services.

Advertising Budget

The amount of money allocated towards advertising in order to promote a product, service, or brand.