Which of the Following Shifts Aggregate Demand Right

question 62

Multiple Choice

Which of the following shifts aggregate demand right?

• A) an increase in government expenditures or a decrease in the price level
• B) a decrease in government expenditures or an increase in the price level
• C) an increase in government expenditures, but not a change in the price level
• D) a decrease in the price level, but not an increase in government expenditures

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Definitions:

Covariation Principle

A concept in social psychology indicating that behavior is attributed to potential causes that co-occur consistently with the observed effect.

Covariation Principle

A principle used to explain how people attribute cause; they note the pattern between the presence or absence of possible causal factors and whether the behavior occurs.

Inference

The process of drawing conclusions from available evidence or premises, often used in reasoning and problem-solving.

Kelley's Covariation Model

A psychological theory that explains how individuals attribute cause to events based on the pattern of covariation between event and possible causes, considering consistency, distinctiveness, and consensus.