Initially,demand-Pull Inflation Will

question 236

Multiple Choice

Initially,demand-pull inflation will

• A) increase the price level and not change real GDP.
• B) increase both the price level and increase real GDP.
• C) increase the price level and decrease real GDP.
• D) shift the aggregate supply curve rightward.

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Definitions:

Psychoanalytic View

A theory of personality development and therapeutic framework that emphasizes unconscious processes and childhood experiences.

Iceberg

A metaphor often used in psychology, especially in Freudian theory, to describe the mind’s structure: conscious mind as the tip of the iceberg, with the unconscious mind below the surface.

Behaviorism

Behaviorism is a scientific approach to psychology that focuses on observable behaviors and dismisses mental activities that cannot be directly observed.

John B. Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over the study of the mind.