If the Current Price Level Was Such That the Aggregate

question 136

Multiple Choice

If the current price level was such that the aggregate quantity demanded exceeded the aggregate quantity supplied, we would expect:

• A)inflation to occur.
• B)the aggregate demand curve to shift rightward.
• C)the aggregate demand curve to shift leftward.
• D)the ratchet effect to be applicable.

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Definitions:

Continuity

The concept that certain properties remain constant over time, despite changes in the container or appearance.

Linear Perspective

Monocular depth perception cue; the tendency for parallel lines to appear to converge on each other.

Motion Parallax

Monocular depth perception cue; the perception of motion of objects in which close objects appear to move more quickly than objects that are farther away.

Reversible

Describing a process or condition that can be returned to its original state or form without permanent damage.