In the Macroeconomy, Demand-Side Shifts Change

question 46

Multiple Choice

In the macroeconomy, demand-side shifts change:

• A) only the price level in the long run, while output eventually returns to its long-run potential level.
• B) only the output level in the long run, while prices eventually return to their long-run potential levels.
• C) aggregate demand only, which eventually shifts back in the long run.
• D) aggregate demand only, which is why the price level remains unaffected in the long run.

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Definitions:

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious, responsible for reality testing and a sense of personal identity.

Id's Desires

Refers to the component of Sigmund Freud's personality theory containing the primitive and instinctive behaviors and urges.

Defense Mechanism

Unconscious psychological mechanisms that reduce anxiety arising from unacceptable or potentially harmful stimuli.

Sublimation

Channeling socially unacceptable impulses and urges into socially acceptable behavior.