In the Long Run, Policy That Changes Aggregate Demand Changes

question 11

Multiple Choice

In the long run, policy that changes aggregate demand changes

• A)both unemployment and the price level.
• B)neither unemployment nor the price level.
• C)only unemployment.
• D)only the price level.

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Definitions:

Emotional Response

The psychological and physiological reactions to stimuli that are perceived as emotionally relevant.

Cognitive Control

Using rational thinking to regulate one’s emotions and to control how one reacts to emotional feelings.

Frontal Lobes

The part of the brain involved in executive functions, such as decision making, problem solving, and controlling behavior.

Bodily Humor

A historical theory in medicine that believed human health and temperament depended on the balance of bodily fluids.