In the Short Run, a Positive Demand Shock _____ Aggregate

question 86

Multiple Choice

In the short run, a positive demand shock _____ aggregate output and _____ the aggregate price level.

• A) reduces; increases
• B) increases; reduces
• C) reduces; reduces
• D) increases; increases

Predict market outcomes based on simultaneous shifts in supply and demand.

Explain the invisible hand principle and its implications for market efficiency.

Understand the functions of prices in a market system.

Grasp the core observations made by classical economists about market behavior.

---

Definitions:

Lewin's Approach

A model of change developed by Kurt Lewin, which includes the stages of unfreezing, changing, and refreezing to facilitate successful change implementation.

Thawing

The process of something frozen, such as ice or snow, becoming liquid or soft as it warms.

Refreezing

The final stage in the process of change, where new behaviors are solidified and integrated into normal operations.

Change Competency

The ability of an organization or individual to effectively adapt to new conditions or changes in the environment.