Suppose the Equilibrium Aggregate Price Level Is Rising and the Equilibrium

question 182

Multiple Choice

Suppose the equilibrium aggregate price level is rising and the equilibrium level of real GDP is falling. Which factor MOST likely caused these changes?

• A) an increase in short-run aggregate supply
• B) an increase in aggregate demand
• C) a decrease in short-run aggregate supply
• D) a decrease in aggregate demand

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Definitions:

Sublimation

A defense mechanism proposed by psychoanalytic theory where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety or social sanctions.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding dealing with painful feelings or events.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts or feelings to someone else.