Which of the Following Best Describes the Aggregate Demand and Aggregate

question 159

Multiple Choice

Which of the following best describes the aggregate demand and aggregate supply model?

• A)Aggregate supply adjusts to equate aggregate demand at the prevailing market prices.
• B)The price level adjusts to equate aggregate demand to aggregate supply.
• C)Aggregate demand adjusts to equate aggregate supply at the prevailing market prices.
• D)Both aggregate demand and supply adjust to become equal at the prevailing market prices.

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Definitions:

James-Lange Theory

A hypothesis positing that the experience of emotion is preceded by physiological arousal.

Two-factor Theory

A theory suggesting that emotional experiences arise from a combination of physiological arousal and a cognitive label for that arousal.

Snakes

Limbless, elongated reptiles belonging to the suborder Serpentes, known for their slithering movement.

Two-factor Theory

A psychological model proposing that human emotions are composed of two factors: physiological arousal and cognitive interpretation of that arousal.