Last Year in the Country of Union, the Price Level

question 168

Multiple Choice

Last year in the country of Union, the price level increased and real GDP increased. Such an outcome might have occurred because short-run aggregate supply ________ and aggregate demand ________.

• A) decreased; decreased
• B) increased; did not change
• C) increased; decreased
• D) did not change; increased

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Definitions:

Formal Institution

An establishment founded on established laws and organized principles, playing a critical role in society, such as governmental bodies, educational institutions, and corporations.

Culture

The collective beliefs, behaviors, objects, and other characteristics common to the members of a particular group or society.

Ethnocentrism

is the belief in the inherent superiority of one's own ethnic group or culture, often leading to prejudice and discrimination against others.

Perspective

A particular attitude towards or way of regarding something; a point of view.