An Increase in Investment Causes the Price Level to ________

question 52

Multiple Choice

An increase in investment causes the price level to ________ in the short run and ________ in the long run.

• A)increase; increase further
• B)increase; decrease
• C)decrease; decrease further
• D)decrease; increase
• E)increase; stagnate

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Definitions:

Fundamental Attribution Error

A cognitive bias where individuals tend to attribute others' actions to their character or personality, underestimating external factors.

Arithmetic Test

An examination designed to assess a person's ability and skill in mathematics, especially in basic operations like addition, subtraction, multiplication, and division.

Unmotivated

Describes a lack of desire or willingness to take action or exert effort towards goals.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or character rather than to situational factors.