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:

South Vietnam

The former, non-communist republic located in the southern half of Vietnam, existing from 1954 until its merger with North Vietnam in 1976 following the Vietnam War.

Attrition Strategy

A military strategy aimed at wearing down an opponent through continuous losses in personnel and material.

Brutality

The extreme cruelty or inhumanity of actions, often used in the context of violence by authorities or during conflicts.

Vietnam War

A protracted conflict from the late 1950s to 1975 in Vietnam, featuring North Vietnamese forces against South Vietnam and its principal ally, the United States.