When Aggregate Demand Shifts Left Along the Short-Run Aggregate Supply

question 37

Multiple Choice

When aggregate demand shifts left along the short-run aggregate supply curve,

• A)unemployment and prices rise.
• B)unemployment rises and prices fall.
• C)unemployment falls and prices rise.
• D)unemployment and prices fall.

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Definitions:

Reasoning Principle

A fundamental aspect of human thought that involves drawing conclusions or making inferences based on premises.

Pleasure Principle

is a psychoanalytic concept suggesting that people seek pleasure and immediate gratification of needs to avoid pain, guiding the id's desires.

Psychosexual Development

Freud's theory on the stages of psychological development from infancy to adulthood, focusing on how early life sexual urges shape personality.

Oral Trait

A characteristic of personality development associated with the oral stage of psychosexual development, focusing on behaviors related to the mouth such as dependency, eating, and verbal communication.