In the Keynesian Cross Diagram,a Decrease in Investment Spending Because

question 104

Multiple Choice

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to fall,and the IS curve to shift to the ________,everything else held constant.

• A)up;left
• B)up;right
• C)down;left
• D)down;right

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Definitions:

Social Pressures

The influence exerted by society or social groups on individuals, encouraging them to conform to specific norms or behaviors.

Social Psychologists

Scientists who study how individuals think, feel, and behave in social contexts, including how people influence and interact with each other.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics, or being similar to others in a given group.

Group Behavior

The study of how group dynamics influence individual behavior, decision-making, and social interactions within a group setting.