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chloe ambersine alvarado
on Nov 16, 2024

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If policymakers increase aggregate demand, then in the short run the price level

A) rises and unemployment falls.
B) and unemployment rise.
C) and unemployment fall.
D) falls and unemployment rises.

Aggregate Demand

The entire requirement for goods and services within an economy, valued at a fixed comprehensive price level during a set duration.

Short Run

In economics, a timeframe where at least one factor of production is considered fixed, limiting the firm's capacity to adjust fully to market changes.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

  • Acquire knowledge about the impact of fiscal and monetary policy on inflation, unemployment, and aggregate demand in the short term.
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klint gomezNov 20, 2024
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