The Recession of 2008-2009 Made Many Firms Pessimistic About the Future

question 219

Multiple Choice

The recession of 2008-2009 made many firms pessimistic about the future profitability of investments.How does this increased pessimism affect the aggregate demand curve?

• A)This will move the economy up along a stationary aggregate demand curve.
• B)This will move the economy down along a stationary aggregate demand curve.
• C)This will shift the aggregate demand curve to the left.
• D)This will shift the aggregate demand curve to the right.
• E)This will shift the aggregate supply curve to the right.

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Definitions:

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including hunger, thirst, and body temperature.

Cingulate

A part of the brain within the cerebral cortex, involved in emotional and cognitive processing.

Brain Stem

The lower extension of the brain where it connects to the spinal cord, responsible for controlling basic life functions such as breathing and heart rate.

fMRI Research

A scientific methodology that uses Functional Magnetic Resonance Imaging to observe brain activity and understand how different areas of the brain function while performing tasks or responding to stimuli.