For the Following Questions, Use the Diagram Below

question 107

Multiple Choice

For the following questions, use the diagram below:
Figure 34-3

-Refer to Figure 34-3.Which of the following would cause the aggregate demand curve to shift from AD₁ to AD₂?

• A)an increase in government purchases
• B)a decrease in stock prices
• C)consumers and firms become more optimistic about the future.
• D)an increase in the price level

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Definitions:

Freud

Refers to Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology and a theory which explains human behavior.

Jung

Refers to Carl Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Entropy Principle

A concept often related to thermodynamics and information theory, referring to the measure of disorder or randomness in a system. In psychology, it may relate to the complexity and unpredictability of human behavior and thought.

Differentiation Principle

In psychology, this refers to the process through which individuals develop a stronger sense of self by distinguishing themselves from others.