In the Basic 45-Degree Line Model, What Is the Effect

question 49

Multiple Choice

In the basic 45-degree line model, what is the effect of a decrease in the price level?

• A)The expenditure line will shift downward.
• B)The expenditure line will shift upward.
• C)There will be movement to the left on the expenditure line.
• D)There will be movement to the right on the expenditure line.

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Definitions:

Sensorimotor Stage

Piaget’s first stage in cognitive development, in which infants learn through senses and motor activity.

Recognition Memory

The ability to recognize previously encountered events, objects, or people.

Preoperational

Pertains to Piaget's stage of cognitive development (roughly ages 2-7) where children start to use language but do not yet comprehend concrete logic.

Concrete Operations

Third stage of Piagetian cognitive development (approximately ages 7 to 12), during which children develop logical but not abstract thinking.