Scenario 34-1

question 153

Multiple Choice

Scenario 34-1.Take the following information as given for a small,imaginary economy:
• When income is $10,000,consumption spending is $6,500.
• When income is $11,000,consumption spending is $7,300.
-Refer to Scenario 34-1.For this economy,an initial increase of $500 in net exports translates into a

• A) $2,000 increase in aggregate demand when the crowding-out effect is taken into account.
• B) $2,500 increase in aggregate demand when the crowding-out effect is taken into account.
• C) $2,000 increase in aggregate demand in the absence of the crowding-out effect.
• D) $2,500 increase in aggregate demand in the absence of the crowding-out effect.

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often resulting in some combination of hallucinations, delusions, and extremely disordered thinking and behavior.

Psychotherapy

A therapeutic treatment involving psychological methods, particularly when based on regular personal interaction, to help a person change behavior and overcome problems in desired ways.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, leading to a detachment from reality.

Therapeutic Alliance

The relationship between therapist and client, recognized to be a predictor of therapy outcome. Recent research in psychodynamic therapy has underlined its importance.