A Rise in the Price Level

question 233

Multiple Choice

A rise in the price level

• A)decreases aggregate demand.
• B)increases aggregate demand.
• C)decreases the quantity of real GDP demanded.
• D)increases the quantity of real GDP demanded.
• E)has no effect on aggregate demand or on the quantity of real GDP demanded.

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Definitions:

Recency Effect

Tendency to attend to the most recent information observed about another person in order to form or modify an impression.

Interpersonal Perception

Process of selecting, organizing, and interpreting your observations of other people.

Interpretation

The act of explaining or understanding the meaning of something, such as a text, action, or event.

Attribution

The process by which individuals explain the causes of behavior and events, often attributing them to internal dispositions or external situations.