In the Case of "Unresponsive Expenditures," the Operation of the Pigou

question 97

Multiple Choice

In the case of "unresponsive expenditures," the operation of the Pigou effect

• A)shifts the LM curve downward,raising output.
• B)shifts the LM curve downward,but fails to affect output.
• C)shifts the IS curve rightward,but since that curve is vertical this has no effect on output.
• D)shifts the IS curve rightward,raising output.

---

Definitions:

Hierarchy Of Needs

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.

Conditions Of Worth

Carl Rogers' term for the conditions we think we must meet for other people to accept us as worthy of their love or positive regard.

Constructive Alternativism

A psychological theory suggesting that people have the ability to interpret their experiences in many ways, supporting the concept of multiple realities.

Eigenwelt

A term from existential psychology, referring to the ‘self-world’ or an individual's subjective experience.