When the SRAS Curve Slopes Upward, the Actual Affect of an Increase

question 44

Multiple Choice

When the SRAS curve slopes upward, the actual affect of an increase in real autonomous spending on equilibrium real GDP is smaller than predicted by the multiplier because

• A) the price level falls.
• B) the price level rises
• C) real GDP increases.
• D) real GDP decreases.

---

Definitions:

Castro Study

A reference to a classic study in social psychology that examined attitudes and persuasion, often associated with the elaboration likelihood model.

Fundamental Attribution Error

A cognitive bias that describes the tendency to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of external factors.

Jones and Harris

Refer to a classical study in social psychology that explored the fundamental attribution error, demonstrating how people tend to attribute others' behaviors to their dispositions rather than to situational factors.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.