In the Dynamic Model of Aggregate Demand and Aggregate Supply

question 45

Multiple Choice

In the dynamic model of aggregate demand and aggregate supply, holding other factors constant, when the natural level of output increases, then inflation:

• A) increases.
• B) decreases.
• C) remains the same.
• D) is zero.

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Definitions:

Congress of the Confederation

The governing body of the United States under the Articles of Confederation, consisting of representatives from each state and possessing limited powers.

Northwestern Land Claims

Territorial disputes and claims in the Northwestern territories of the United States, primarily during the late 18th and early 19th centuries, involving land rights and settlement.

Northwest Ordinance

A 1787 federal law that created a method for admitting new states to the Union from the territory, and listed rights and freedoms.

Land Ordinance

A reference to the Land Ordinance of 1785, a law aimed at orderly settlement and division of territory into townships in the United States.