Exhibit 23-5 -If Output Was at the Level Corresponding to Point E

question 143

Multiple Choice

Exhibit 23-5
-If output was at the level corresponding to point E in Exhibit 23-5, then

• A)income would increase.
• B)aggregate output would decrease.
• C)it would be in equilibrium.
• D)the marginal propensity to consume would decrease.
• E)spending would decrease.

---

Definitions:

Chunking

A process by which individual pieces of information are bound together into a meaningful whole, often enhancing memory retention.

Filtering

Filtering is the process of selectively focusing on certain information while ignoring other stimuli, often used in processing auditory information or in information theory.

Acoustic Encoding

The process of remembering and understanding something you hear.

Rehearsal

The cognitive process of repeatedly practicing or going over information to aid in memory retention.