Changes in the Price Level

question 228

Multiple Choice

Changes in the price level

• A)increase the level of aggregate supply in the long run.
• B)decrease the level of aggregate supply in the long run.
• C)do not affect the level of aggregate supply in the long run.
• D)increase the level of aggregate supply in the long run only at very high levels of output.
• E)increase the level of aggregate supply in the long run only at very low levels of output.

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Definitions:

Consumer Price Index

A gauge that assesses the combined average prices of a variety of consumer products and services, encompassing transportation, food, and medical attention.

Cyclical Unemployment

This type of unemployment is caused by the downturns in the business cycle, where workers lose their jobs due to a lack of demand during economic recessions.

Discouraged Worker

An individual who has stopped looking for employment due to the belief that no jobs are available for them or there are none for which they would qualify.

BLS

The Bureau of Labor Statistics, a US government agency responsible for collecting and analyzing critical economic data, including employment and inflation.