Using Figure 8

question 7

Multiple Choice

Using Figure 8.5,if the equilibrium real output is Q₂ then

• A)Aggregate demand must be AD₁.
• B)Aggregate demand could be either AD₁ or AD₂ depending on the level of aggregate supply.
• C)The equilibrium price level is P₂.
• D)Aggregate supply must be AS₁ and the equilibrium price level must be P₁.

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Definitions:

Physiological Needs

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep.

Psychological Needs

Fundamental emotional or cognitive requirements essential for mental health and well-being, such as autonomy, competence, and relatedness.

Organismic Valuing Process

A concept in humanistic psychology where individuals inherently make evaluations or value judgments based on their experiences, acting in ways congruent with their true self.

Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.