Consider the Basic AD/AS Macro Model

question 50

Multiple Choice

Consider the basic AD/AS macro model. The simple multiplier is reflected by the

• A)downward movement along the AD curve in response to a change in autonomous expenditure.
• B)size of the rightward shift of the AD curve in response to a change in autonomous expenditure.
• C)horizontal distance between initial macroeconomic equilibrium and the new intersection of AD and AS in response to a change in autonomous expenditure.
• D)size of the downward shift of the AD curve in response to a rise in autonomous expenditure.
• E)upward movement along the AD curve in response to a change in autonomous expenditure.

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Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without the conscious intention to deceive.

Dementia

A category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, affecting daily functioning.

Lewy Body

Abnormal aggregates of protein that develop inside nerve cells, contributing to Parkinson’s disease, Lewy body dementia, and other disorders.

Pick Disease

A rare neurodegenerative disease that causes progressive destruction of nerve cells in the brain, leading to changes in behavior, personality, and ultimately severe dementia.