Figure 82 Alt Text for Figure 8

question 7

Multiple Choice

Figure 8.2 Alt text for Figure 8.2: In figure 8.2, a graph comparing real GDP and real aggregate expenditure.
Long description for Figure 8.2: Line AE1, begins a little less than half way along the x-axis and slopes up toward the end of the x-axis.Line AE2, begins at a point half way on the x-axis and slopes up to the top right corner.Line AE2 is to the left of AE1, and is on a similar path as the line AE1.Line Y = AE, originates at the vertex and slopes upward toward the top right corner.Line Y = AE meets line AE1 at point K, half way along both lines, and meets line AE2 at point N, plotted close to the right end of the line AE2.Point J is plotted a little less than half way along the line AE1, to the left of point K.Another point L is marked close to the right end of line AE1, to the right of point K.
-Refer to Figure 8.2.If the Canadian economy is currently at point K, which of the following could cause it to move to point N?

• A)The price level in Canada rises relative to the price level in other countries.
• B)Parliament passes investment tax incentives.
• C)The interest rate rises.
• D)Household wealth declines.
• E)The Canadian economy grows more quickly than in other countries.

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Definitions:

Syllogism

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.

Aristotle

A Greek philosopher and polymath during the Classical period in Ancient Greece, one of the most influential figures in Western philosophy and science.

Equilateral Triangle

A polygon with three sides of equal length and three angles of equal measure, resulting in a symmetrical shape.

Natural Concept

A mental representation of objects or events from real-life experiences, as opposed to definitions precisely defined by rules.