In the Short Run, Policy That Changes Aggregate Demand Also

question 143

Multiple Choice

In the short run, policy that changes aggregate demand also changes which of the following?

• A)both unemployment and the price level
• B)neither unemployment nor the price level
• C)only unemployment
• D)only the price level

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the driver of human behavior to seek immediate gratification of needs and desires.

Schemas

Mental models or cognitive frameworks that assist people in categorizing and understanding information through the lens of previous knowledge and experiences.

Freud

Austrian neurologist Sigmund Freud created psychoanalysis, a therapeutic method aimed at treating psychological disorders through dialogue between a patient and their psychoanalyst.

Hostile Comments

Communication or remarks that are aggressive, insulting, or intended to harm or belittle someone.