What Sequence of Events Results from an Increase in Aggregate

question 265

Multiple Choice

What sequence of events results from an increase in aggregate demand?

• A) The price level falls, inventories decline, firms respond by increasing output and employment.
• B) The price level falls, inventories increase, firms respond by reducing output and employment.
• C) The price level rises, inventories decline, firms respond by increasing output and employment.
• D) The price level rises, inventories increase, firms respond by increasing output and employment.

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Definitions:

Infants

Young children, typically under one year of age, who are in the early stages of development.

Low Birthweight

Refers to a birth weight of a newborn less than 2,500 grams (5 pounds, 8 ounces), which may be linked to health issues.

Brain Development

The process of growth and change in the brain’s structure, function, and pathways that occurs throughout a person’s life, but is most intense during childhood.

Selective Attrition

The phenomenon where participants drop out of a study over time, potentially leading to biased results if the dropout rate varies among the groups being studied.