Suppose Aggregate Demand Increases by Less Than Expected

question 130

Multiple Choice

Suppose aggregate demand increases by less than expected. Which of the following describes what will occur?

• A) Real GDP will be more than potential GDP.
• B) Real GDP will be less than potential GDP.
• C) The price level will fall.
• D) Both answers A and B are correct.

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Definitions:

Achievement Oriented

Focused on setting and accomplishing specific goals to achieve success.

Weiner's Theory

Bernie Weiner's theory centers on the attribution process, explaining how individuals attribute causes to successes and failures.

Achievement-related Event

An occurrence that significantly impacts an individual’s sense of accomplishment, often related to personal or professional goals.

Interpretation

Interpretation involves the process of explaining, understanding, or making sense of something, such as a text, an event, or a behavior, based on personal perspectives or theoretical frameworks.