When Output Exceeds the Full Employment Level of Output, We

question 25

Multiple Choice

When output exceeds the full employment level of output, we expect that the

• A) wages and prices increase as the long- run aggregate supply curve shifts upward over time.
• B) wages and prices increase as the short- run aggregate supply curve shifts upward over time.
• C) wages and prices decrease as the short- run aggregate supply curve shifts downward over time.
• D) wages and prices increase as the long- run aggregate supply curve shifts downward over time.

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Definitions:

Cognitive Theory

A psychological paradigm that emphasizes mental processes such as thinking, memory, and problem-solving as central to understanding behavior.

Cognitive Distortion

Irrational thought patterns that contribute to negative emotions, behaviors, or attitudes, often recognized in cognitive-behavioral therapy.

Dysfunctional Thinking

Patterns of thought that are irrational, negative, and may lead to emotional distress or behavioral problems.

Negative Experiences

Negative experiences are events or situations that have a harmful or unpleasant impact on an individual's psychological or physical well-being.