Which of the Following Would Result If the Price Level

question 150

Multiple Choice

Which of the following would result if the price level were below the equilibrium level?

• A)Aggregate demand would increase.
• B)Aggregate supply would decrease.
• C)Consumers would bid prices up by competing for goods currently in shortage.
• D)Shortages would force sellers to lower prices in order to increase aggregate quantity demanded.

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Definitions:

Advantages and Disadvantages

The beneficial and negative aspects or outcomes associated with a particular action, decision, or situation.

Cognitive Dissonance

The discomfort in one’s mind arising from holding several contradictory beliefs, ideas, or values at once.

Observational Learning

A form of learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Classical Conditioning

An educational method where learned reactions are developed through the relationship between an environmental trigger and a naturally existing stimulus.