Zachary Is Unhappy in His Relationship and Is Trying to Decide

question 75

Multiple Choice

Zachary is unhappy in his relationship and is trying to decide whether to break up with his girlfriend.Which of the following situations would most likely to encourage him to stay?

• A) if his comparison level for alternatives is high
• B) if his comparison level is high
• C) if his investment is high
• D) if his costs for staying are high

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Definitions:

Price Level

The mean value of prices for the full range of goods and services in the economy.

Consumption and Investment

Elements of economic activity where consumption represents spending by households on goods and services, while investment refers to spending on capital goods that will be used for future production.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand in an economy, leading to a stable price level and full employment.

Aggregate Production

The total output of goods and services produced by an economy over a specified period.