The Table Gives Aggregate Demand and Supply Schedules for a
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question 74

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Amount of Real Output } \\\text { Demanded }\end{array} & \text { Price Level (Index Value) } & \begin{array} { c } \text { Amount of Real Output } \\\text { Supplied }\end{array} \\\hline \$ 200 & 300 & \$ 500 \\\hline 300 & 250 & 450 \\\hline 400 & 200 & 400 \\\hline 500 & 150 & 300 \\\hline 600 & 100 & 200 \\\hline\end{array}$$ The table gives aggregate demand and supply schedules for a hypothetical economy. If the amount of real output demanded at each price level falls by $200, this might have been caused by

• A) an increase in net exports.
• B) a worsening of business expectations.
• C) an increase in consumer wealth.
• D) a decrease in the personal income tax.

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Definitions:

Social Order

The arrangement of practices and behaviors on which society’s members base their daily lives, aimed at maintaining stability and predictability.

Conflict Theory

A theory that views social and economic institutions as tools of the struggle between groups or classes, used to maintain inequality and the dominance of the ruling class.

Functionalism

A theoretical framework in sociology that emphasizes the interconnectivity and interdependence of societal institutions and their roles in maintaining social order.

Social Cohesion

The extent to which members of a society feel connected and united towards achieving common goals, fostering a sense of belonging and mutual support.