When ________, the Price Level Rises, Inventories Decrease and Firms

question 28

Multiple Choice

When ________, the price level rises, inventories decrease and firms respond by increasing output and employment.

• A) aggregate demand increases
• B) aggregate demand decreases
• C) aggregate supply decreases
• D) aggregate supply increases

---

Definitions:

Atoms

The smallest units of matter that retain the properties of an element, comprising protons, neutrons, and electrons.

Stretching Vibration

A vibrational movement in molecules where atoms move along the line of the bond, changing the bond length.

IR Spectroscopy

Infrared (IR) spectroscopy is an analytical technique used to identify and study chemicals through the absorption of infrared radiation, which causes molecular vibrations.

Electronegativity

A characteristic of a chemical nature indicating how strongly an atom pulls electrons toward it within a chemical bond.