Adding Globalization with Large Trade Deficits to the Standard AS/AD

question 25

Multiple Choice

Adding globalization with large trade deficits to the standard AS/AD model shows:

• A)reduced domestic production and consumption.
• B)increased domestic production and consumption.
• C)increased domestic production and reduced consumption.
• D)decreased domestic production and increased consumption.

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Behavioral Economists

Economists who study the impacts of psychological, cognitive, emotional, cultural, and social factors on economic decisions made by individuals and institutions.

Behavioral Economics

An area of economics that incorporates insights from psychology to understand decision-making and economic behavior that deviates from classical economic theories.