If the Economy Is Operating Way Below Capacity, an Increase

question 97

Multiple Choice

If the economy is operating way below capacity, an increase in aggregate demand causes a ________ change in the price level and ________ change in output.

• A) big; big
• B) big; small
• C) small; big
• D) small; small

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Definitions:

Significance

The measure of how meaningful or important a finding is, often determined through statistical analysis in research.

Thoughts

The mental process of thinking, which involves forming ideas, concepts, and planning.

Transference

A psychoanalytic concept where emotions, desires, and expectations from one relationship are unconsciously redirected onto another, especially in therapy.

Psychoanalytic Therapy

A therapeutic approach that seeks to explore and resolve unconscious conflicts through techniques such as dream interpretation and free association.