In the Long Run, a Decrease in Aggregate Demand, All

question 108

Multiple Choice

In the long run, a decrease in aggregate demand, all other things unchanged, will cause the price level to

• A) increase and potential output to increase.
• B) decrease and potential output to decrease.
• C) increase and potential output to remain stable.
• D) decrease and potential output to remain stable.

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Definitions:

Intermediate Frequencies

Frequencies that are between the highest and lowest frequencies in a given range, often used in the processing of signals in radios and other communication devices.

Volley Principle

The volley principle is a theory of hearing that suggests groups of auditory neurons can provide a higher frequency response by firing in succession, allowing for the perception of sounds higher than their individual maximum firing rates.

Reflected Sounds

Sounds that are echoed or bounced off surfaces, altering the perception of the sound source.

Absolute Pitch

The ability to identify or reproduce a musical note without the need for a reference tone.