Suppose That the Actual and Expected Price Levels Are Initially

question 179

Multiple Choice

Suppose that the actual and expected price levels are initially equal,and that the expected price level falls.Which of the following will occur over the long run? (Hint: Recall the actual price level is on the vertical axis.)

• 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:

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Secure Attachment

A type of attachment style where individuals feel confident and trust in the availability and responsiveness of their caregivers or significant others.

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A feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.

Avoidance

The action of keeping away from or not engaging in certain situations or stimuli.