A Decrease in Aggregate Supply Means

question 292

Multiple Choice

A decrease in aggregate supply means

• A) both the real domestic output and the price level will decrease.
• B) the real domestic output will increase and rises in the price level will become smaller.
• C) the real domestic output will decrease and the price level will rise.
• D) both the real domestic output and rises in the price level will become greater.

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Definitions:

Psychoanalytic Theory

A psychological framework originated by Sigmund Freud that emphasizes unconscious psychological processes (e.g., desires and fears) in shaping human behavior and personality.

Evolutionary Theory

A scientific theory explaining the process of natural selection and how it leads to complexity and diversity in the biological world.

Genetic Make-Up

The unique combination of genes inherited from both parents that determines the biological characteristics and traits of an individual.

Disposition

A person’s inherent qualities of mind and character.