Which of the Following Is Associated with an Increase in the Average

question 121

Multiple Choice

Which of the following is associated with an increase in the average price level?

• A)A decrease in the aggregate quantity demanded
• B)An increase in the aggregate quantity demanded
• C)A leftward shift of the aggregate demand curve
• D)A rightward shift of the aggregate demand curve
• E)Aggregate quantity demanded remains unchanged but the aggregate expenditures curve shifts leftward.

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Definitions:

Final Product

The completed good or service that is available for sale to the end-user, after all stages of production and processing are completed.

MPP

Marginal Physical Product, which represents the additional output resulting from the use of one more unit of a variable input, holding other inputs constant.

Resource

Assets, materials, or inputs that are available to an individual, organization, or society to produce goods and services.

Output

The total amount of goods or services produced by a company, industry, or economy.