If Aggregate Demand Shifts Right, Then Eventually Price Level Expectations

question 156

True/False

If aggregate demand shifts right, then eventually price level expectations rise. This increase in price level expectations causes the aggregate demand curve to shift to the left back to its original position.

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Definitions:

Allostatic Load

The term refers to the “wear and tear” of the body due to prolonged activation of physiological stress responses.

Allostasis

The concept that different circumstances require different levels of physiological activation.

Activation

The process of initiating or stimulating an action or response by the nervous system or any biological mechanism.

Endocrine System

A network of glands that produce and release hormones directly into the blood to regulate the body's growth, metabolism, and sexual development and function.