As the Price Level Falls and Other Things Remain the Same

question 319

Multiple Choice

As the price level falls and other things remain the same, real wealth__________and___________ .

• A) increases; the quantity of real GDP demanded increases
• B) increases; aggregate demand increases
• C) decreases; the quantity of real GDP demanded decreases
• D) decreases; short-run aggregate supply decreases

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Definitions:

Social Psychology

A branch of psychology that deals with understanding how individual behavior, feelings, and thoughts are influenced by the actual, imagined, or implied presence of others.

Conform

To adjust one's behavior or thinking to coincide with a group standard.

Behaviors

How an individual or system responds or acts when subjected to outside or inside stimuli.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "knew-it-all-along" effect.