If the Price Level in an Economy Turns Out to Be

question 119

Multiple Choice

If the price level in an economy turns out to be higher than that expected by workers and firms,_____.

• A)businesses increase production.
• B)the economy's potential output level increases.
• C)the economy's short-run aggregate supply curve shifts rightward.
• D)the economy's short-run aggregate supply curve shifts leftward.
• E)a recessionary gap develops.

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Definitions:

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions, leading to the movement of substances from high to low concentration.

Competitive Molecules

Molecules that compete with each other for binding sites on enzymes or receptors in biological systems.

Sodium-Potassium Pump

A cell membrane protein that uses ATP to move sodium ions out of the cell and potassium ions into the cell, essential for cellular function.

Plasma Membrane

The phospholipid bilayer that surrounds cells, controlling the movement of substances in and out of the cell, thereby maintaining its internal environment.