In the Short Run, an Upward Shift in the Aggregate

question 137

True/False

In the short run, an upward shift in the aggregate expenditure curve leads to a leftward shift in the short-run aggregate supply curve.

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Definitions:

Convergent Thinking

A cognitive process in which multiple pieces of information are combined to solve a problem or come up with a single, correct solution.

Functional Fixedness

A cognitive bias that limits a person to use an object only in the way it is traditionally used, hindering the ability to see alternative uses.

Standardization

The development of uniform procedures for administering and scoring a test, and the creation of norms (performance standards) for the test.

Norms

Shared expectations or rules within a group or culture about how to behave.