Figure 7-6 -Refer to Figure 7-6. Suppose the Economy Is Initially in Is

question 132

Multiple Choice

Figure 7-6
-Refer to Figure 7-6. Suppose the economy is initially in short-run equilibrium at B. A shift from AD₁ to AD₂ could have been caused by all of the following except

• A) an increase in consumer optimism.
• B) economic prosperity in foreign economies.
• C) a personal income tax cut.
• D) an increase in the price level from P_a to P_b.

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements via skeletal muscles.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information to and from all parts of the body.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for fight or flight responses by increasing heart rate, dilating pupils, and other physiological changes.

Endocrine System

A network of glands in the body that secrete hormones directly into the bloodstream to regulate bodily functions.