Considering Both the Keynesian and the Aggregate Demand-Supply Frameworks,if Households

question 142

Multiple Choice

Considering both the Keynesian and the aggregate demand-supply frameworks,if households as a group experience an increase in wealth at a given price level,then the TE curve shifts __________,the AD curve shifts __________,and Real GDP __________.

• A) downward; leftward; decreases
• B) downward; rightward; decreases
• C) upward; rightward; increases
• D) upward; leftward; increases

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Definitions:

Testable Variable

An element or factor in a scientific experiment that can be altered and measured to determine its effects on the outcome.

Psychological Conflicts

Internal struggles resulting from incompatible or opposing desires, demands, or impulses.

Sex

A biological classification based on physiological differences, such as reproductive organs, but also a term used to reference sexual activity.

Aggression

A form of behavior characterized by physical or verbal attack, it can be a manifestation of psychological issues or social conflicts.