An Increase in Aggregate Demand Causes an Increase in ________

question 22

Multiple Choice

An increase in aggregate demand causes an increase in ________ only in the short run,but causes an increase in ________ in both the short run and the long run.

• A)the price level; real GDP
• B)real GDP; real GDP
• C)the price level; the price level
• D)real GDP; the price level

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Definitions:

Volunteer Bias

The potential distortion in research results due to the characteristics of individuals who willingly choose to participate in studies.

Artificial Environment

An environment created by human beings as opposed to natural settings, often designed for specific purposes or research.

Privileged

Having special rights, advantages, or immunities not commonly accessible to all, often based on social, economic, or legal status.

Ethnic Minorities

Groups within a larger community that have different national, tribal, religious, linguistic, or cultural origins than the majority population.