FIGURE 23-1 Refer to Figure 23-1

question 47

Multiple Choice

FIGURE 23-1 Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P₀.Now,suppose the AE curve shifts to AE¹ and we move to a new equilibrium level of GDP at Y₁ and point A on AD⁰.A possible cause of this change in equilibrium is

• A)an exogenous rise in the price level.
• B)a decrease in desired investment.
• C)a decrease in autonomous consumption.
• D)a decrease in desired net exports.
• E)an increase in government purchases.

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Definitions:

Hermann Rorschach

A Swiss psychiatrist who developed the Rorschach inkblot test, a psychological test in which subjects' perceptions of inkblots are recorded and analyzed.

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Consistent patterns of thought, behavior, and emotion that characterize an individual's responses across various situations.

Mortality

refers to the state of being mortal or the incidence of death in a population.

Divorce

The official ending of a marriage through the decision of a court or a recognized authority.