An Economic Contraction Caused by a Shift in Aggregate Demand

question 184

Multiple Choice

An economic contraction caused by a shift in aggregate demand causes prices to

• A) rise in the short run, and rise even more in the long run.
• B) rise in the short run, and fall back to their original level in the long run.
• C) fall in the short run, and fall even more in the long run.
• D) fall in the short run, and rise back to their original level in the long run.

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Definitions:

Wilhelm Wundt

A German physician, physiologist, and philosopher, widely considered the father of experimental psychology, who founded the first formal laboratory for psychological research.

Bumps On The Head

Colloquially refers to minor head injuries, often not serious but sometimes used humorously to imply a cause of foolishness.

Trained Introspection

A method in psychology where trained observers examine and report the content of their own thoughts and mental experiences.

Wilhelm Wundt

A German psychologist who is often considered the father of experimental psychology, having established the first psychology laboratory in Leipzig, Germany, in 1879.