Refer to the Diagram

question 22

Multiple Choice

Refer to the diagram. Rational expectations theory says that a fully anticipated shift in aggregate demand from AD₁ to AD₂ will

• A) move the economy from a to b to c.
• B) move the economy directly from a to c.
• C) move the economy from a to a new equilibrium at b.
• D) shift the AS curve to the right.

---

Definitions:

Feminism

A movement and ideology advocating for equal rights, opportunities, and treatment for women, fighting against gender-based discrimination.

Scientific Research Methods

Systematic and empirical methods of investigation used to increase or refine knowledge in the sciences, involving critical analysis, experimentation, and observation.

Participant Observation

A research method used in sociology and anthropology in which the researcher takes part in the community or group being studied to gain a deep understanding of its dynamics.

Variable

A characteristic, number, or quantity that can change or vary and is used in scientific research to measure or test outcomes.