Within the AD/AS Model, If Consumers and Investors Become More

question 137

Multiple Choice

Within the AD/AS model, if consumers and investors become more optimistic about the future direction of the economy,

• A) aggregate demand will decrease.
• B) aggregate demand will increase.
• C) long-run aggregate supply will increase.
• D) long-run aggregate supply will decrease.

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Definitions:

Cognitive Triad

A concept in cognitive therapy that refers to an individual's negative view of themselves, their future, and the world, contributing to depression.

Cognitive Errors

Faulty patterns of thinking that contribute to misinterpretations of reality or to emotional distress.

Beck

Refers to Aaron T. Beck, a psychiatrist known for his work in developing cognitive therapy, now known as cognitive-behavioral therapy (CBT).

Psychosocial History

An individual’s past experiences and personal history regarding social interactions and psychologically significant events, often reviewed in therapeutic settings to better understand current issues.