If Society Wants Aggregate Demand to Increase Without Changes in the Price

question 65

Multiple Choice

If society wants aggregate demand to increase without changes in the price level, then there must be

• A) a gap between full employment and the current level of real GDP and an increase in autonomous spending.
• B) an increase in autonomous spending combined with an increase in the marginal propensity to save.
• C) an increase in autonomous saving so that autonomous investment spending can increase.
• D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.

---

Definitions:

Cognitive Reappraisal

A strategy involving changing one's interpretation or emotional response to a situation in order to alter its emotional impact.

Self-Regulatory Perseveration

The continuous effort to control one's thoughts, emotions, and actions, even in challenging situations that require sustained self-discipline.

Depression

A mental health disorder characterized by persistent feelings of sadness, loss of interest, and a lack of energy, often accompanied by physical symptoms.

Goal

An objective or desired result that a person or a system aims to achieve, often within a specific time frame.