Which One of the Following Statements Is True

question 26

Multiple Choice

Which one of the following statements is true?

• A) In the short run, the level of output is determined by demand.
• B) In the long run, the level of output is determined by demand.
• C) In the long run, the aggregate supply curve is horizontal.
• D) Where aggregate demand and aggregate supply intersect is always the full-employment level of output.

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Definitions:

Unconscious

Relating to the part of the mind that is inaccessible to conscious thought but that affects behavior and emotions.

Memory

The cognitive process involving encoding, storing, and retrieving information, allowing individuals to retain and recall past experiences.

Pleasure Principle

A psychoanalytic concept suggesting that people seek immediate gratification to fulfill their desires and avoid pain, without considering the consequences.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it realistically, as opposed to the pleasure principle.