Author Question: An increase in aggregate demand in the long run will most likely result in: a. a decrease in price ... (Read 60 times)

Arii_bell · **on:** Jun 30, 2018

An increase in aggregate demand in the long run will most likely result in:
a. a decrease in price and output levels.
b. an increase in price and output levels.
c. an increase in the price level and a decrease in output.
d. a decrease in the price level and an increase in output.
e. an increase in the price level but no change in output.

Question 2

An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is:
a. greater than 1.
b. less than 1 but more than zero.
c. negative.
d. exactly equal to zero.
e. exactly equal to one.