Suppose the Actual and Expected Price Levels in an Economy

question 117

Multiple Choice

Suppose the actual and expected price levels in an economy are initially equal.However,the actual price level falls eventually due to a change in economic conditions.Which of the following will occur over the long run?

• A)The economy will move rightward along the short-run aggregate supply curve.
• B)The economy will move leftward along the short-run aggregate supply curve.
• C)The short-run aggregate supply curve will shift to the right.
• D)The short-run aggregate supply curve will shift to the left.
• E)The short-run aggregate supply curve will become flatter.

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Definitions:

Approach-Inhibition Model

A psychological theory suggesting that power increases an individual's tendency to approach positive stimuli and outcomes, while reducing their perception of risks.

Teachers

Educators or instructors who facilitate learning for students, typically in a school, college, or university setting.

Students

Individuals enrolled in an educational institution for the purpose of learning.

Power Tactics

Strategies or actions used by individuals or groups to influence or control others in the pursuit of personal or collective objectives.