As a Recessionary Gap Self-Corrects, the Equilibrium Price Level _____

question 170

Multiple Choice

As a recessionary gap self-corrects, the equilibrium price level _____ and the equilibrium real output _____.

• A) rises; decreases
• B) rises; increases
• C) falls; decreases
• D) falls; increases

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Definitions:

Selective Attention

The cognitive process of focusing on a particular object or task, while ignoring irrelevant information.

Cognitive Abilities

Mental capabilities involved in learning, reasoning, problem solving, and adapting to new situations.

Encoding

The first step of transforming data into a format that can be preserved in memory.

PKU

Short for Phenylketonuria, a genetic disorder characterized by the inability to metabolize phenylalanine, leading to its accumulation and potential brain damage.