How Does an Economic Contraction That Is Caused by a Shift

question 95

Multiple Choice

How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?

• A) The expected price level rises, shifting aggregate demand right.
• B) The expected price level rises, shifting aggregate demand left.
• C) The expected price level falls, shifting aggregate supply right.
• D) The expected price level falls, shifting aggregate supply left.

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Definitions:

Role Transitions

The process of changing from one social position, status, or responsibility to another, which can impact individuals' lives and require adjustment.

Interpersonal

Relating to relationships or communication between people.

Behavioural

Related to the actions or reactions of an individual in response to external or internal stimuli.

Cognitive

Relating to the mental processes of perception, memory, judgment, and reasoning, as opposed to emotional or volitional processes.