If the Price Level Falls by 5%,then All Else Being

question 25

Multiple Choice

If the price level falls by 5%,then all else being equal,the long-run aggregate supply curve will:

• A) remain unchanged.
• B) shift to the right to reflect an increase in output of 5%.
• C) shift to the right to reflect an increase in output of more than 5%.
• D) shift to the left to reflect a decrease in output of 5%.
• E) shift to the left to reflect a decrease in output of more than 5%.

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Definitions:

Hermann Ebbinghaus

A German psychologist known for his pioneering work in the study of memory, including the discovery of the forgetting curve and the spacing effect.

Forgetting

The loss of information from long-term memory, reflecting a failure in either storing, retaining, or recalling the information.

Tip-of-the-Tongue Phenomenon

A common cognitive condition where an individual temporarily cannot recall a word or name but has a strong sense of its existence and feels that retrieval is imminent.

Eidetic Imagery

The ability to recall images, sounds, or objects in memory with high precision and detail, often referred to as photographic memory.