If the Economy Is in Macroeconomic Equilibrium with a Vertical

question 40

Multiple Choice

If the economy is in macroeconomic equilibrium with a vertical AS curve,and then aggregate demand increases,we expect the AE function to shift to a

• A)higher level and stay there.
• B)higher level,but then shift part of the way down to its original position as the price level rises.
• C)higher level but then return to its original position as the price level rises.
• D)lower level and stay there.
• E)lower level,but then return to its original position as the price level rises.

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Definitions:

Group's Cohesiveness

The degree to which members of a group are attracted to each other and motivated to stay in the group, influencing its effectiveness and stability.

Situational Model

A theory or framework that suggests behavior is determined by a combination of someone's personality and the specific characteristics of the situation they are in.

Group Situation

A scenario in which individuals are interacting or working together in a shared or common space, often towards a shared goal.

Cross-Cultural Analyses

The examination and comparison of different cultural practices, beliefs, and values, aiming to identify patterns and differences across cultures.