In the Long-Run, an Increase in Aggregate Demand Increases the Price

question 107

True/False

In the long-run, an increase in aggregate demand increases the price level, but not real GDP.

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Definitions:

Amphetamines

Drugs that have effects on the body similar to those of the naturally occurring hormone adrenaline. Originally developed as a nasal decongestant and asthma treatment in the 1930s. In addition to shrinking mucous membranes and constricting blood vessels, they increase alertness and concentration. Chronic amphetamine use is associated with feelings of fatigue and sadness, as well as periods of social withdrawal and intense anger.

Decongestant

A medication used to relieve nasal congestion in the upper respiratory tract.

Asthma Treatment

Involves managing symptoms and preventing asthma attacks using a combination of lifestyle changes, inhalers, medications, and sometimes allergy treatments.

Hyperactive Children

Children who display excessively high levels of activity, often impulsively and with difficulty focusing, commonly associated with ADHD.