Use the Following to Answer Questions

question 182

Multiple Choice

Use the following to answer questions:
-(Figure: AD-AS) Refer to Figure: AD-AS. Suppose that the economy is initially at E₁, where AD₁ intersects SRAS₁ and LRAS. Now, suppose that the AD₁ shifts to AD_2. That shift could be due to a(n) :

• A) increase in the aggregate price level.
• B) decrease in government expenditure.
• C) increase in tax rates.
• D) increase in money supply.

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Definitions:

Observational Studies

Research methods in which the investigator passively observes and records behavior without interfering with the subjects.

Psychologists

Professionals in the field of psychology who study mental processes and behaviors, often providing therapy and counseling.

Introspection

The practice of reflecting on one's own mental and emotional experiences.

Dependent Variable

In experimental research, the variable that is tested and measured to see if it is influenced by the independent variable.