If Both Aggregate Demand and Short-Run Aggregate Supply Increase at the Same

question 37

Multiple Choice

If both aggregate demand and short-run aggregate supply increase at the same time,

• A) the price level increases, but the change in equilibrium income is unknown.
• B) both the price level and equilibrium income increase.
• C) both the price level and equilibrium income decline.
• D) equilibrium income increases, but the change in the price level is unknown.
• E) the change in both equilibrium income and the price level is ambiguous.

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Definitions:

Secure Attachment

An emotional bond in which one feels safe and protected, often discussed in the context of caregiver-child relationships.

Strange Situation

A procedure developed in psychology to observe attachment relationships between a caregiver and child, through a series of introductions, separations, and reunions.

Smiling

A facial expression formed by flexing the muscles near both ends of the mouth, often expressing happiness or pleasure.

Oral Stage

The first phase in Freud's psychosexual development theory, occurring in the first year of life, where the mouth is the primary focus of pleasure and exploration.