-Suppose the Economy Is at Point B

question 2

Multiple Choice

-Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?

• A) It stays at point B.
• B) It shifts to a point such as C.
• C) It shifts to a point such as A.
• D) None of the above answers are correct because it is the SAS curve that shifts, not the AD

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Definitions:

Psychodynamic Formulations

An approach in psychotherapy that assesses a patient's personality and psychological functioning by exploring the subconscious dynamics and interpersonal relationships.

Biological

Pertaining to the study of life and living organisms, involving their structure, function, growth, origin, evolution, and distribution.

Diathesis-Stress Perspective

The view that a predisposition to develop a disorder (the “diathesis”), interacting with the experience of stress, causes mental disorders. According to this perspective, the interaction underlies the onset of all disorders, although either the predisposition or the stress may be more important in a particular disorder, or in a particular person.

Diathesis

A predisposition or vulnerability to developing a disorder or disease, often influenced by genetics and environmental factors.