A Decrease in Aggregate Supply Will Tend to Cause the Price

question 82

Multiple Choice

A decrease in aggregate supply will tend to cause the price level to:

• A)rise and GDP to fall.
• B)rise and GDP to rise.
• C)rise and the unemployment rate to fall.
• D)fall and GDP to rise.
• E)fall and the unemployment rate to rise.

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Definitions:

One-Third

A fraction that represents one part of three equal parts of a whole.

Psychache

A term referring to intense psychological pain or inner pain that becomes unbearable for the individual.

Intolerable Emotional Pain

A severe, overwhelming emotional distress that surpasses an individual's ability to cope or find relief.

Cognitive Impairment

A reduction in cognitive functions such as memory, attention, and decision-making, which can result from various conditions, including aging, brain injury, or mental illness.