If the Economy Is Operating in the Intermediate Range of the Aggregate

Multiple Choice

If the economy is operating in the intermediate range of the aggregate supply curve, then the greater the rate of growth of aggregate demand the:

A) Greater the resulting increase in the price level, the greater the rate of growth of output, and the greater the unemployment rate
B) Greater the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate
C) Less the resulting increase in the price level, the lower the rate of growth of output, and the greater the unemployment rate
D) Greater the resulting increase in the price level, the greater the rate of growth of output, and the lower the unemployment rate