An Unexpected Increase in Aggregate Demand Typically Causes

question 110

Multiple Choice

An unexpected increase in aggregate demand typically causes

• A) frictional unemployment to increase but structural unemployment to decrease.
• B) the price level to increase but has no effect on the unemployment rate.
• C) the price level to increase and the unemployment rate to fall.
• D) the price level to increase and the unemployment rate to increase.

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Definitions:

Defensive Coping

Strategies individuals use to protect themselves from psychological harm by denying or rationalizing away sources of stress or anxiety.

Unconscious Level

A part of the mind that influences actions and feelings without one's awareness, as theorized in psychoanalytic psychology.

Psychological Maladjustment

A state of being poorly or inadequately adjusted to environmental demands, often leading to distress or dysfunction.

Less Realistic

Describes an approach or expectation that might not accurately reflect actual circumstances or possibilities.