The Diagram Below Shows an AD/AS Model for a Hypothetical

question 82

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3 Refer to Figure 24-3.Which of the following events could have shifted the AD curve from to ?

• A)an increase in net exports
• B)an increase in government purchases
• C)an increase in desired investment
• D)an increase in autonomous household saving
• E)an increase in autonomous consumption

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Definitions:

Postmodernism

A broad movement that developed in the mid- to late-20th century across philosophy, the arts, architecture, and criticism, marked by a skepticism towards meta-narratives and ideologies.

Economic Basis

The underlying foundation or the main driving factor of an economy, typically referring to the way in which production, distribution, and exchange of goods and services are organized.

Unifying Features

Characteristics or elements that bring individuals or groups together, creating a sense of solidarity or cohesion.

Cultural Diffusion

The transmission of cultural elements from one society or cultural group to another.