If Real Output Rises and the Price Level Falls, This

question 35

Multiple Choice

If real output rises and the price level falls, this would likely be due to a:

• A)rightward shift of the aggregate demand curve.
• B)leftward shift of the aggregate demand curve.
• C)rightward shift of the aggregate supply curve.
• D)leftward shift of the aggregate supply curve.

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Definitions:

Medium

A channel or means for the transmission of information or data, or a substance in which something else is conveyed or occurs.

Vibration

An oscillation or rapid motion back and forth or up and down of particles in a medium or an object.

Molecules

The smallest unit of a chemical substance that can exist independently while retaining the composition and chemical properties of the substance.

Opponent-Process Theory

A theory proposing that our emotions are regulated by mechanisms that operate in opposing pairs, such as happiness-sadness, explaining why high levels of one emotion can lead to subsequent feelings of the opposite.