Refer to the Graph Shown

question 52

Multiple Choice

Refer to the graph shown. Expansionary fiscal policy is most likely to shift the aggregate demand curve from:

• A)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₁ if crowding out does occur.
• B)AD₀ to AD₂ if crowding out does not occur and from AD₀ to AD₃ if crowding out does occur.
• C)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₂ if crowding out does occur.
• D)AD₂ to AD₀ if crowding out does not occur and from AD₁ to AD₃ if crowding out does occur.

---

Definitions:

Intermediate-Frequency

Refers to the frequency that lies between the radio frequency (RF) and the audio frequency (AF) bands, commonly used in communication electronics for signal processing.

Volley Principle

A theory in neuroscience that suggests multiple neurons can collectively transmit a higher frequency of signals by firing in synchronization, especially relevant in the context of auditory processing.

Frequency Theory

A theory regarding how sounds are converted into electrical signals in the brain to interpret pitch by the rate of hair cell vibrations.

Place Theory

A theory in hearing that suggests different areas of the cochlea are activated by different frequencies of sound.