If the Aggregate Demand Curve Shifts to the Left in the Short

question 26

Multiple Choice

If the aggregate demand curve shifts to the left in the short run then the long-run equilibrium will be at a:

• A) higher price level and higher level of output.
• B) higher price level and lower level of output.
• C) lower price level and same level of output.
• D) lower price level and lower level of output.

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Definitions:

Price Discriminate

The practice of charging different prices to different consumers for the same product or service, based on what the seller thinks the market can bear, rather than standard costs.

Monopolist

An entity with exclusive control over the supply of a particular good or service, setting prices without competition.

Pure Monopolist

A market structure where a single firm completely dominates the market, with no close substitutes for its product, allowing it to control prices.

Discriminating

The act of making a distinction or differentiating between items, people, or situations, often based on specific criteria.