In the Above Figure, the Economy Initially Is at Point

question 277

Multiple Choice

In the above figure, the economy initially is at point A and then an increase in the quantity of money moves the economy to point D. If the quantity of money remains constant, the economy will adjust with

• A) aggregate demand shifting back to AD₀.
• B) short- run aggregate supply shifting leftward to SAS₁.
• C) short- run aggregate supply shifting leftward to SAS₂.
• D) aggregate demand shifting to AD₂.

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Definitions:

Cognitive Triangle

A conceptual model in cognitive behavioral therapy that illustrates the interrelation between thoughts, emotions, and behaviors.

Cognitive Coping Skills

Techniques and strategies that help an individual manage stressful situations and emotions through altering maladaptive thoughts and beliefs.

Cognitive Assessment

A psychological evaluation designed to measure an individual's intellectual abilities, memory, problem-solving skills, and other cognitive functions.

Cognitive Restructuring

A therapeutic process aimed at challenging and changing unhelpful beliefs and attitudes.