Figure 15-2 -Refer to the Figure 15-2.In a Closed Economy,which of the Closed

question 38

Multiple Choice

Figure 15-2

-Refer to the Figure 15-2.In a closed economy,which of the following would cause the aggregate demand curve to shift from AD to AD*?

• A)an increase in government purchases
• B)a decrease in stock prices
• C)an increase in consumer and firm optimism about the future
• D)an increase in the price level

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Definitions:

Experiment

A method of investigation in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or condition.

Testable Prediction

A testable prediction is a specific statement about the expected outcome of a scientific experiment, based on a hypothesis or theory, that can be observed and measured.

Independent Variables

Variables in an experiment that are manipulated or changed to observe their effects on dependent variables.

Dependent Variables

In an experiment, the variable that is being measured or tested, expected to change as a result of manipulation of the independent variable.