In the Long Run,a Decrease in Aggregate Demand Will Cause

question 81

Multiple Choice

In the long run,a decrease in aggregate demand will cause a(n)

• A)decrease in price and output levels
• B)increase in price and output levels
• C)increase in the price level and a decrease in output
• D)decrease in the price level and an increase in output
• E)decrease in the price level and no change in output

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Definitions:

Arcuate Nucleus

A nucleus in the hypothalamus involved in the regulation of many physiological processes, including appetite and fertility.

Modulation

The process of varying a property of a waveform, such as its amplitude or frequency, to encode information.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems, and involved in sleep and emotional activity.

Expectancy-Value Model

A psychological model that explains how the motivation to perform a behavior is influenced by the expectation of success and the value of the success to the individual.