As World Economies Start to Recover from the 2008 Financial

question 145

Multiple Choice

As world economies start to recover from the 2008 financial crisis and firms expect profits to increase,

• A) investment will increase and there will be a movement up along the aggregate demand curve.
• B) both investment and aggregate demand will increase.
• C) the price level in the U.S. will decrease as firms increase investment.
• D) the U.S. short-run aggregate supply curve immediately will shift rightward.

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Definitions:

Self-perception Theory

A psychological theory suggesting that people develop their attitudes and opinions by observing their own behavior and concluding what attitudes must have caused it.

Psychological Discomfort

A mental state of unease which can stem from anxiety, stress, unfamiliarity, or situations that push one out of their comfort zone.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.

Central Route Persuasion

A method of persuasion that involves deeply processing the content of the message, leading to lasting attitude change.