The Figure Above Shows Aggregate Demand Curves

question 259

Multiple Choice

The figure above shows aggregate demand curves.
-Based on the figure above, the aggregate demand curve will shift from AD₀ to AD₁ when

• A)potential GDP increases.
• B)the price level falls.
• C)the price level rises.
• D)government expenditure decreases.
• E)the Federal Reserve lowers the interest rate.

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Definitions:

Reasonably Stable Patterns

Regular or consistent behaviors, thoughts, or emotions that remain relatively unchanged over time.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual that is distinct from one another.

Emotions

Complex psychological states that involve physiological arousal, expressive behaviors, and conscious experience.

Psychodynamic Theories

Theories that emphasize the influence of the unconscious mind and childhood experiences on personality and behavior.