For a Fixed Inflation Rate Target, a Decrease in the Inflation

question 33

Multiple Choice

For a fixed inflation rate target, a decrease in the inflation rate corresponds to a ________ the aggregate demand curve and a decrease in exogenous spending corresponds to a ________ the aggregate demand curve.

• A)shift left of; movement up
• B)movement up; shift right of
• C)shift left of; shift right of
• D)movement down; shift left of

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Definitions:

Need-Based Theories

Are theories of motivation that focus on what motivates a person, rather than on how that motivation occurs.

Motivation

A psychological force that drives individuals to achieve goals and fulfill needs.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into existence, relatedness, and growth categories.