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Subject - Economics:

Macroeconomics

MCQ - 55-4065

Question:

When both short-run aggregate supply and aggregate demand increase, which of the following can be said for certain?

  1. The price level rises, but real GDP falls.
  2. Both the price level and real GDP rise.
  3. The price level rises, but the change in real GDP is uncertain.
  4. Both the price level and real GDP rise.
  5. Real GDP rises, but the change in the price level is uncertain.

Correct Answer: E

Explanation:

Increased SRAS lowers the price level, but increased AD increases the price level. The change in the price level is uncertain, but real GDP rises.

Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: When both short-run aggregate supply and aggregate demand increase, which of the following can be said for certain? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 55-4065.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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