Figure 34-5

question 76

Multiple Choice

Figure 34-5.On the left-hand graph,MS represents the supply of money and MD represents the demand for money;on the right-hand graph,AD represents aggregate demand.The usual quantities are measured along the axes of both graphs.

-Refer to Figure 34-5.Suppose the multiplier is 3 and the government increases its purchases by $25 billion.Also,suppose the AD curve would shift from AD₁ to AD₂ if there were no crowding out;the AD curve actually shifts from AD₁ to AD₃ with crowding out.Finally,assume the horizontal distance between the curves AD₁ and AD₃ is $30 billion.The extent of crowding out,for any particular level of the price level,is

• A) $25 billion.
• B) $30 billion.
• C) $45 billion.
• D) $60 billion.

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Definitions:

Fearful Expressions

Facial expressions that convey fear, often characterized by widened eyes, raised eyebrows, and a tensed mouth, serving as non-verbal communication of emotion.

Angry Expressions

Are facial and body signals that convey feelings of anger, which can be a response to perceived threats or injustices and serve communicative and adaptive functions in social interactions.

Sad Expressions

Facial or bodily expressions indicating sadness, a basic human emotion characterized by feelings of disappointment, loss, or helplessness.

Introverts

Individuals who tend to be more inward-turning, focusing on internal thoughts, feelings, and moods rather than seeking out external stimulation.