Figure 21-3. -Refer to Figure 21-3. for an Economy Such as the Such

question 376

Multiple Choice

Figure 21-3.
-Refer to Figure 21-3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decrease in output from Y₁ to Y₂?

• A)consumption
• B)investment
• C)net exports
• D)government spending

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Definitions:

Parasympathetic Division

A branch of the autonomic nervous system responsible for 'rest and digest' activities, slowing down the body after stress or exertion.

Intense Arousal

A heightened state of physiological activity and alertness, often associated with emotions such as excitement, anxiety, or fear.

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body to react to stressful situations.

Increases Respiration

A physiological condition where the rate and depth of breathing rise, often in response to exercise, stress, or another stimuli.