In the AD-AS Model, How Is the Price Level Affected

question 56

Multiple Choice

In the AD-AS model, how is the price level affected when spending by the federal government exceeds net taxes?  

• A) The price level tends to rise. 
• B) The price level tends to fall. 
• C) The price level remains the same. 
• D) The price level tends to first rise, and then fall.

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Definitions:

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Self-Control

The ability of an individual to regulate their emotions, thoughts, and behaviors in the face of temptations and impulses.

Innate

Traits, abilities, or qualities that are natural, inherent, or present from birth, not acquired through learning.

Permissive Parent

A parenting style characterized by a high degree of affection and minimal discipline, allowing children significant freedom and self-regulation.