Within the AD/AS Model, an Unanticipated Increase in Short-Run Aggregate

question 190

Multiple Choice

Within the AD/AS model, an unanticipated increase in short-run aggregate supply will cause real output to

• A) increase and the general level of prices to fall.
• B) decrease and the general level of prices to rise.
• C) increase and the general level of prices to rise.
• D) decrease and the general level of prices to fall.

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Definitions:

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of temptation.

Cognitive Dissonance

The psychological discomfort experienced by an individual when holding two or more contradictory beliefs, ideas, or values at the same time.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Behaviors

The actions, reactions, or conduct of an individual, group, or system, often analyzed in psychological or sociological contexts.