A Fall in the Price Level Causes Changes in the IS-LM

question 37

Multiple Choice

A fall in the price level causes changes in the IS-LM diagram that can also be recorded as a

• A)rightward shift of the AD curve.
• B)leftward shift of the AD curve.
• C)movement downward along an AD curve.
• D)movement upward along an AD curve.

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Definitions:

Relationship Images

Internal representations or mental pictures individuals hold about relationships based on past experiences.

Adlerian

A psychological approach based on the theories of Alfred Adler, focusing on the importance of the feeling of inferiority and the striving for significance.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality.