Suppose an Initial Increase in Spending Cause the Aggregate Demand

question 101

Multiple Choice

Suppose an initial increase in spending cause the aggregate demand curve in Figure 10.2 increases by a total of $60 billion,from AD₂ to AD_0.Equilibrium GDP will

• A)Increase by less than $60 billion because some of the additional spending drives up prices.
• B)Increase by $60 billion.
• C)Increase by more than $60 billion because of the multiplier effect.
• D)Decrease because higher inflation causes unemployment.

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The process of recognizing and coming to terms with reality, often involving circumstances that cannot be changed.

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A therapeutic approach developed by Carl Rogers, emphasizing an empathetic, accepting environment to facilitate a client's growth and self-discovery.

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