Changes in Expectations About Future Price Levels

question 18

Multiple Choice

Changes in expectations about future price levels:

• A) affect only the short-run aggregate supply curve.
• B) affect only the long-run aggregate supply curve.
• C) affect both the long-run aggregate supply curve and the short-run aggregate supply curve.
• D) do not affect either the long-run aggregate supply or the short-run aggregate supply curve.

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Definitions:

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Attitude Inoculation

A method of making individuals resistant to attempts to change their attitudes by initially exposing them to small arguments against their beliefs.

Self-Presentational Concerns

The efforts individuals make to create specific impressions of themselves in the minds of others.

Planned Behavior

Refers to the Theory of Planned Behavior, which is a psychological theory that links belief systems to behavior, positing that behavioral intention is influenced by attitudes, subjective norms, and perceived control over the behavior.