Figure 15-2 -Refer to the Figure 15-2.Which of the Following Can Happen

question 159

Multiple Choice

Figure 15-2

-Refer to the Figure 15-2.Which of the following can happen in a closed economy?

• A) Unemployment falls as the economy moves from a to b.
• B) Fiscal policy is ineffective to move the economy from b to a.
• C) If the economy is left alone, then as the economy moves from b to long-run equilibrium, the price level will increase.
• D) An increase in money supply increases both output and prices.

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Definitions:

Ingratiation Tactic

A social strategy employed to make oneself more likable to others.

Complimenting

Expressing praise, admiration, or approval towards someone, often enhancing positive interpersonal relations and self-esteem.

Foot-In-The-Door Tactic

A persuasion strategy involving getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Compliance

The act of conforming to a request, demand, or regulation, often motivated by a desire to gain approval or to avoid conflict.