An Increase in Long-Run Aggregate Supply Can Be Expected to ________

question 120

Multiple Choice

An increase in long-run aggregate supply can be expected to ________ the price level and ________the natural rate of unemployment.

• A) have no effect on; have no effect on
• B) have no effect on; increase
• C) decrease; decrease
• D) decrease; have no effect on
• E) increase; have no effect on

---

Definitions:

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.

Naturalistic Observation

A research method involving the systematic observation and recording of behaviors as they occur in their natural environment, without manipulation or control by the researcher.

Play Behavior

Activities engaged in for enjoyment and recreation rather than a serious or practical purpose, commonly observed in both humans and animals.

Young Children

Individuals in the early stages of their life, typically considered to be in the preschool and early elementary school ages.