If the Price Level Turns Out to Be Higher Than

question 26

Multiple Choice

If the price level turns out to be higher than expected,

• A)businesses increase production
• B)the potential output level increases
• C)initially,the short-run aggregate supply curve shifts rightward; later,there is an upward movement along that curve
• D)initially,the short-run aggregate supply curve shifts rightward; later,there is a downward movement along that curve
• E)a contractionary gap develops

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Definitions:

Work Hours

The period of time during a day, week, or other defined period that is designated for professional activities or employment.

Group Memberships

The state or fact of being a member of a social group, which influences identity, beliefs, and behavior through social connections.

Conflict Theory

A social theory that views societal structures as inherently unequal, based on power differentials, leading to conflicts between different groups over resources, status, and power.

Categorization

The cognitive process of organizing objects, people, or concepts into classes or groups based on shared characteristics or attributes.