In the Long Run, the Price Level Is Determined by

question 109

Multiple Choice

In the long run, the price level is determined by

• A) aggregate demand.
• B) aggregate supply.
• C) the government.
• D) consumers and firms.

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Definitions:

Behaviour Occurring

Actions or reactions of an individual or group in response to external or internal stimuli.

Increase Probability

The act of making an event or outcome more likely to occur.

Behaviour

The way in which an individual acts or conducts themselves, especially towards others.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable outcome or stimulus following a desired behavior increases the likelihood of that behavior being repeated.