If Aggregate Supply Increases and Aggregate Demand Remains Unchanged

question 48

Multiple Choice

If aggregate supply increases and aggregate demand remains unchanged,

• A) there will be a positive relationship between the price level and the level of aggregate output.
• B) there will be a negative relationship between the price level and the level of aggregate output.
• C) there will be no systematic relationship between the price level and the level of aggregate output.
• D) the price level will remain unchanged, but aggregate output will decrease.

Conceptualize how economic policies and household decisions influence saving and consumption patterns.

Understand the relationship between savings rate and economic conditions across different countries and time periods.

Comprehend the concepts of Average Propensity to Consume (APC) and Average Propensity to Save (APS).

Analyze the impact of consumer behavior on saving and consumption patterns.

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Definitions:

Boxplot

A graphical representation of data that displays the distribution's quartiles and median, highlighting the range and skewness of the dataset.

Dollars

A unit of currency used in the United States and other countries, represented by the symbol $.

Track Team

A group of athletes specializing in track and field events, such as running, jumping, and throwing competitions.

Boxplot

A graphical representation of data that displays the distribution, outliers, and measures of central tendancy using a five-number summary.