What Is the Result of an Increase in the Price

question 67

Multiple Choice

What is the result of an increase in the price level?

• A) This will shift the aggregate demand curve to the left.
• B) This will shift the aggregate demand curve to the right.
• C) This will move the economy down along a stationary aggregate demand curve.
• D) This will move the economy up along a stationary aggregate demand curve.

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Definitions:

Framing Error

A cognitive bias where the way information is presented influences decision making or judgment.

Escalation

The process of increasing or intensifying a situation or conflict, often leading to a more serious state.

Overconfidence

A cognitive bias where someone's subjective confidence in their judgments is greater than their objective accuracy.

Short-Term Thinking

A focus on immediate results or benefits at the expense of longer-term goals or implications.