In the Short Run, an Expansionary Demand Shock Causes the Average

question 13

Multiple Choice

In the short run, an expansionary demand shock causes the average price level to _____ and the total output level to:

• A) fall; rise.
• B) fall; fall.
• C) rise; rise.
• D) rise; fall.

---

Definitions:

Trickle Down

An economic theory that suggests benefits for the wealthy will "trickle down" to everyone else, improving the economy as a whole by promoting investment and spending.

Moral Intensity

The perceived importance or magnitude of the ethical implications in a given situation or decision, influencing moral judgments and actions.

Distributive Justice

The perceived fairness in the allocation of resources or rewards within a group or organization, impacting individuals' satisfaction and motivation.

Utilitarianism

A moral theory stating that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.