If the Price Level Increases, the AE Curve Shifts

question 151

Multiple Choice

If the price level increases, the AE curve shifts

• A) downward and we move along the AD curve.
• B) downward and the AD curve shifts rightward.
• C) upward and the AD curve shifts leftward.
• D) upward and we move along the AD curve.

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Definitions:

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the frequency of the behavior.

Classical Conditioning

An educational process where continuous pairing of two stimuli leads to the response initially triggered by the second stimulus being eventually triggered by the first stimulus.

Operant Learning

A type of learning where behavior is controlled by consequences, including rewards and punishments, as described by B.F. Skinner.

Cognitive Error

Faulty thinking or mistaken beliefs that can lead to incorrect conclusions or decisions.