Which of the Following Would Result If the Price Level

question 37

Multiple Choice

Which of the following would result if the price level were below the equilibrium level?

• A)Aggregate demand would increase.
• B)Aggregate supply would decrease.
• C)Consumers would bid prices up by competing for goods currently in shortage.
• D)Shortages would force sellers to lower prices in order to increase aggregate quantity demandeD.Shortages would develop across the economy,which would cause prices to rise and thus encourage more production.

---

Definitions:

Moral Panic

A widespread feeling of fear, often an irrational one, that some evil threatens the well-being of society, usually stirred up by media and politicians.

Publicized School Shootings

School shootings that receive widespread media attention, impacting public perception and policy discussions on gun control and school safety.

Critical Race Scholars

Academics and theorists who explore and challenge the ways in which race and racism implicitly and explicitly affect social structures, practices, and discourses.

Racial Profiling

The act of law enforcement agents singling out people for potential criminal activity suspicion based on their race, ethnicity, religious beliefs, or country of origin.