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

question 93

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 AD1 to AD2?

• 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:

Field Dependence/Independence

A cognitive style that describes individuals' tendency to rely on or disregard the surrounding context in processing information.

Reflectivity/Impulsivity

A cognitive style dimension referring to the way individuals trade off speed and accuracy of responding.

Working Memory

A cognitive system that holds information temporarily for processing and manipulation, crucial for reasoning and guidance of decision-making and behavior.

Older Adults

Individuals typically defined as being aged 65 years and older, often with considerations for their social, health, and cognitive changes.