11.4 Consequences of Changes in Aggregate Demand

question 301

Multiple Choice

11.4 Consequences of Changes in Aggregate Demand

-Refer to the above figure. An increase in aggregate demand between real Gross Domestic Product (GDP) levels Y₀ and Y₁

• A)would most likely result in some inflation.
• B)would not increase output since the economy is already working at full capacity.
• C)would have no effect on the price level.
• D)would cause price levels to fall.

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Definitions:

Objectified Others

The concept of viewing and treating people as objects without regard to their personality, dignity, or individuality.

Transference Problem

In psychotherapy, the redirection of a patient's feelings for a significant person to the therapist.

Problem of Intimacy

Issues or difficulties in establishing or maintaining close, personal relationships, often explored in therapeutic settings.

Psychoanalysis

A therapeutic approach that explores the unconscious influences on behavior and thoughts, developed by Sigmund Freud.