An Increase in the Price Level Leads to

question 291

Multiple Choice

An increase in the price level leads to

• A) a downward shift in the AE curve and a movement upward along the AD curve.
• B) a downward shift in both the AE and AD curves.
• C) a downward shift in the AD curve and a movement downward along the AE curve.
• D) a leftward movement along both the AE and AD curves.
• E) an upward shift in the AE curve and a movement upward along the AD curve.

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Definitions:

Primary Process Thinking

A mode of thinking primarily in the unconscious mind, driven by the pleasure principle and characterized by illogical and associative connections.

Generalization

The process of applying information or conclusions from specific instances to broader contexts or groups, often simplifying complex information.

Assimilation

Piaget’s term for incorporation of new information into an existing cognitive structure.

Accommodation

Adjusting one's schemas and understanding to incorporate new and differing information or experiences.