-In the Figure Above, the Shift in the Aggregate Demand

question 26

Multiple Choice

-In the figure above, the shift in the aggregate demand curve from AD₁ to AD₃ could be the result of

• A)a decrease in the real interest rate.
• B)a decrease in the buying power of money.
• C)an increased expectation of a recession that lowers the expected rate of profit from investment.
• D)a decrease in the foreign exchange rate.
• E)an increase in the price level.

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Definitions:

Negative Punishment

Decreasing a behavior by removing a desirable stimulus after the behavior occurs.

Negative Reinforcement

A concept in behavioral psychology where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of it recurring.

Negative Self-talk

A form of internal dialogue focused on criticizing or undervaluing oneself that can impact one's emotional state and self-esteem.

Practice

The act of repeatedly performing or exercising an activity or skill so as to acquire or maintain proficiency in it.