- Based on the Figure Above, the Aggregate Demand Curve Will

question 67

Multiple Choice

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Based on the figure above, the aggregate demand curve will shift from AD0 to AD1 when

• A)the Federal Reserve lowers the interest rate.
• B)government expenditure decreases.
• C)the price level rises.
• D)potential GDP increases.
• E)the price level falls.

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Definitions:

Smelled Food

The act of detecting the aroma of food, which can trigger physiological reactions such as salivation and influence appetite.

Operant Behavior

Behavior emitted spontaneously or voluntarily that operates on the environment to change it.

Respondent Behavior

Reactions that are automatic and involuntary, typically elicited by specific stimuli, contrasted with operant behavior, which is influenced by its consequences.

Extinguishable Behavior

A learned response that decreases in frequency or disappears when it is no longer reinforced in a behavioral psychology context.