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An increase in aggregate demand results in a(n) _____ in the _____.

a. recession, long run

b. expansion, long run

c. expansion, short run

d. recession, short run

Sagot :

Option C is correct. An increase in aggregate demand results in a(n) expansion in the short run.

The costs of labor and products are the principal driver of organic market in the economy. However, the converse is likewise evident: changes in organic market influence the cost of labor and products. The link between aggregate demand and general price levels is not necessarily clear or direct. Notwithstanding, in the most broad sense (and under ceteris paribus conditions), an expansion in total interest relates with an expansion in the cost level.

Aggregate demand increments when the parts of aggregate demand including consumption spending, venture spending, government endlessly spending on sends out less imports-rise.

Aggregate demand is a economic measurement of the all out amount of completed labor and products that are requested in an economy. This estimation is communicated as the aggregate sum of cash traded for those labor and products at a particular value level and moment.

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