If a Rise in the Expected Price Level Results in an Immediate

question 111

Multiple Choice

If a rise in the expected price level results in an immediate and equal rise in wages and prices,then an expansionary monetary policy will cause ________.

• A) the aggregate demand curve to shift to the right, and output to increase only if the policy is anticipated
• B) the aggregate demand curve to shift to the right, and output to increase only if the policy is unanticipated
• C) a decline in the price level
• D) both B and C of the above

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Definitions:

Sensory Experience

The perception of the environment through the senses, such as sight, sound, smell, taste, and touch.

Subliminal Level

A threshold of perception where stimuli are below the level of conscious awareness, yet can influence thoughts, feelings, or actions.

Visual System

The part of the central nervous system which gives organisms the ability to process visual detail, enabling the formation of images.

Neural Impulses

Electrical signals that travel along neurons, enabling communication within the brain and between the brain and the rest of the body.