Based on the Figure Below

question 151

Multiple Choice

Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD¹ will lead to a short-run equilibrium at point ___ creating _____gap.

• A) D; an expansionary
• B) B; expansionary
• C) A; a recessionary
• D) B; no output

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Definitions:

Functional Approach

A psychological perspective that considers mental life and behavior in terms of active adaptation to the person's environment.

Complex Processes

Procedures or operations that involve multiple steps, factors, or components, often requiring sophisticated analysis, planning, or understanding.

Taste Sensations

The experience of flavor perceived in the mouth and throat, typically categorized into five basic tastes: sweet, sour, salty, bitter, and umami.

William James

A pioneering American psychologist and philosopher who co-founded the philosophical school of pragmatism and contributed significantly to functional psychology.