If Both Consumers and Businesses Are Pessimistic About the Future

question 62

Multiple Choice

If both consumers and businesses are pessimistic about the future of the economy

• A) there is a movement up along the aggregate demand curve.
• B) the aggregate demand curve shifts to the left.
• C) there is a movement down along the aggregate demand curve.
• D) the aggregate demand curve shifts to the right.

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Definitions:

Vestibular Sense

The sensory system that provides the leading contribution to the sense of balance and spatial orientation for the purpose of coordinating movement with balance.

Equilibrium

A state of balance or stability within a system, achieved through the equal action of opposing forces.

Gestalt Law

Principles of the Gestalt psychology movement that describe how humans naturally organize visual elements into whole objects rather than perceiving the parts separately.

Similarity

The state or fact of being alike or having common features or attributes.