Refer to Figure 5 Below

question 38

Multiple Choice

Refer to Figure 5 below.In Figure 5, national income has fallen from its full employment level YF to a lower level, YU, at which there is unemployment.This may have been due to a decline in exports that has shifted the IS curve to the left.What might cause the LM curve to automatically move to the right and so move the economy back towards YF? Figure 5

• A)A rise in the general level of prices in the economy.
• B)A fall in the general level of prices in the economy.
• C)A rise in government spending.
• D)A reduction in taxes.

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Definitions:

Cognitive-Developmental Theory

The stage theory that holds that the child’s abilities to mentally represent the world and solve problems unfold as a result of the interaction of experience and the maturation of neurological structures.

Environments

The surroundings or conditions in which a person, animal, or plant lives and operates, including natural, social, and built aspects.

Age of Reason

A developmental stage typically around the age of 7 when children start to use logic and recognize the difference between right and wrong.

Social Cognitive Theory

A cognitively oriented learning theory that emphasizes observational learning.