If the Economy Is Operating Way Below Capacity, an Increase

question 162

Multiple Choice

If the economy is operating way below capacity, an increase in aggregate demand causes a big change in the ________ and small change in ________.

• A) aggregate demand; aggregate supply
• B) aggregate supply; aggregate demand
• C) output; price level
• D) price level; output

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Definitions:

Income

The financial return or earnings from work, investments, or any other sources, usually measured over a specific period.

Disparity

A great difference or inequality between two or more things, often relating to unfair treatment or outcomes in society.

Upper-upper Class

The upper-upper class refers to the highest echelon of society based on wealth, familial heritage, and social standing, often characterized by substantial influence and resources.

Non-Hispanic

A term used to refer to individuals or populations that do not identify as Hispanic or Latino, often used in demographic and statistical contexts for clarity.