Aggregate Demand Increases If

question 175

Multiple Choice

Aggregate demand increases if

• A) the government increases spending.
• B) the Fed sells government bonds.
• C) the government increases taxes.
• D) the Fed raises the discount rate.

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Definitions:

Concrete Operational Stage

A stage in Piaget's theory of cognitive development, where children aged about 7 to 12 years can think logically about concrete events.

Decentering Stage

A cognitive development stage in which children start to understand perspectives and feelings of others, moving beyond self-centered thought.

Abstract Operational Stage

A stage of cognitive development in Jean Piaget's theory, typically occurring from around age 12 and up, when individuals gain the ability to think abstractly and logically.

Centration

A cognitive limitation in early childhood, where the focus is on one salient aspect of a situation, neglecting other possible factors.