Which of the Following Would Cause Prices and Real GDP

question 15

Multiple Choice

Which of the following would cause prices and real GDP to rise in the short run?

• A)short-run aggregate supply shifts right
• B)short-run aggregate supply shifts left
• C)aggregate demand shifts right
• D)aggregate demand shifts left

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Definitions:

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Base-Rate Information

Refers to the statistical frequency of various phenomena or characteristics within a given population, used to inform judgment and decision-making processes.

Base-Rate Information

Statistical information that represents the prevalence or general occurrence of a particular trait, behavior, or event within a larger population.

Availability Heuristic

An instinctive mental tactic that uses the nearest instances that surface in thought while considering a certain topic, theory, strategy, or judgment.