What Is the Effect of an Increase in the Price

question 91

Multiple Choice

What is the effect of an increase in the price level?

• A)The real value of dollar-denominated assets will rise.
• B)The aggregate expenditure line will shift upward.
• C)The equilibrium level of output demanded will rise.
• D)There will be upward movement along a particular aggregate demand curve.
• E)The aggregate demand curve will shift rightward.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, often testable through experimentation or other forms of research.

Independent Variable

In an experiment, the variable that the experimenter manipulates to examine its impact on the dependent variable.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Humanistic Psychology

A school of thought that investigates how people grow to become happier and more fulfilled; it focuses on the basic goodness of people.