An Increase in the Expected Price Level Shifts Short-Run Aggregate

question 3

Multiple Choice

An increase in the expected price level shifts short-run aggregate supply to the

• A)right,and an increase in the actual price level shifts short-run aggregate supply to the right.
• B)right,and an increase in the actual price level does not shift short-run aggregate supply.
• C)left,and an increase in the actual price level shifts short-run aggregate supply to the left.
• D)left,and an increase in the actual price level does not shift short-run aggregate supply.

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Definitions:

Sensory Stimuli

Refers to any external or internal event or factor that can be perceived by the senses and elicit a response.

Nerve Endings

The terminal parts of nerve cells that make synaptic connections with other nerve cells, muscles, or glands.

Nervous System

An extensive network of specialized cells that communicate information about an organism's environment and its own body in order to regulate its functions.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or unchanging stimuli over time, allowing individuals to focus on changes in their environment.