An Unexpected Increase in Aggregate Demand Causes

question 129

Multiple Choice

An unexpected increase in aggregate demand causes

• A) the unemployment rate to fall, with no change in the price level.
• B) the price level to rise, but the duration of unemployment will remain constant, so the unemployment rate remains constant.
• C) simultaneously the price level to rise and the unemployment rate to fall.
• D) simultaneously the price level to fall and the unemployment rate to fall.

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Definitions:

Humanist Theory

A psychological perspective emphasizing individual choice and potential, focusing on the human capacity for growth and personal understanding.

Maslow

A reference to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivational needs.

Cultural Backgrounds

The various societal influences, traditions, and heritage that shape an individual's or group's identity and behaviors.

Ethnic Backgrounds

The categorization of individuals based on shared cultural, national, tribal, religious, linguistic, or ancestral heritage.