In the Short-Run,any Fall in EP /P,regardless of Its

question 38

Multiple Choice

In the short-run,any fall in EP /P,regardless of its causes,will cause

• A)an upward shift in the aggregate demand function and an expansion of output.
• B)an upward shift in the aggregate demand function and a reduction in output.
• C)a downward shift in the aggregate demand function and an expansion of output.
• D)an downward shift in the aggregate demand function and a reduction in output.
• E)an upward shift in the aggregate demand function but leaves output intact.

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Definitions:

Intelligence Test

An assessment tool designed to measure a person's cognitive capabilities and mental capacity.

Projective Hypothesis

The theory suggesting that people project their own unconscious feelings, desires, and attitudes onto ambiguous stimuli.

Ambiguous Stimulus

A stimulus that lacks clarity or can be interpreted in multiple ways, often used in psychological experiments to explore perception, personality, or decision-making.

Projective Tests

Psychological assessment tools that use ambiguous stimuli to uncover a person’s unconscious desires, fears, and struggles.