Consider the Following (Edited) Excerpt from a James Thurber New

question 190

Multiple Choice

Consider the following (edited) excerpt from a James Thurber New Yorker piece: "Suddenly someone began to run.It may be that he had simply remembered… an engagement to meet his wife, for which he was now frightfully late.Whatever it was, he ran east on Broad Street.Somebody else began to run, perhaps a newsboy in high spirits… Another man broke into a trot… A loud mumble gradually crystallized into the dread word 'dam.' 'The dam has broke!' The fear was put into words by a little old lady in an electric car, or by a traffic cop, or by a small boy: Nobody knows who… Two thousand people were abruptly in full flight…" This literary excerpt illustrates the phenomenon known as

• A) conversion.
• B) propaganda.
• C) collective psychosis.
• D) contagion.

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Definitions:

Aggregate Supply

The total supply of goods and services produced within an economy at a given overall price level in a given period.

Sticky-Price Theory

A theory proposing that prices of goods do not immediately adjust to changes in economic conditions, causing economic inefficiencies.

Aggregate Demand

The grand total of all demands for goods and services within an economic sphere, established at a certain collective price level during a fixed timeframe.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, at a given price level.