Figure: Aggregate Demand Shifts 3 Refer to the Figure

question 71

Multiple Choice

Figure: Aggregate Demand Shifts 3 Refer to the figure. If the government lowers its spending growth so that the AD curve shifts from AD₁ to AD₂, the multiplier effect will cause the AD curve to:

• A) shift back to AD₁.
• B) remain at AD₂.
• C) shift farther to AD₃.
• D) shift all the way out to AD₄.

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Definitions:

Solid foods

Nutrient-rich foods introduced to an infant's diet in addition to breastmilk or formula, typically starting around 6 months of age to support growth and development.

Dendrites

Root-like parts of neurons that receive impulses from other neurons.

Neurons

The basic working units of the brain, specialized cells that transmit information through electrical and chemical signals.

Axon terminals

The endings of axons, responsible for transmitting signals through neurotransmitters to other neurons or muscles.