Which of the Following Likely Occurs When Households and Firms

question 179

Multiple Choice

Which of the following likely occurs when households and firms are pessimistic?

• A) Increased spending,increases aggregate demand,rising real GDP and a falling unemployment rate.
• B) Decreased spending,increases aggregate demand,rising real GDP and a falling unemployment rate.
• C) Decreased spending,decreased aggregate demand,falling real GDP and a falling unemployment rate.
• D) Decreased spending,decreased aggregate demand,falling real GDP and a rising unemployment rate.

---

Definitions:

Self-As-Other Models

Psychological frameworks suggesting individuals can understand and assess themselves by adopting the perspectives of others.

Stereotype

A fixed and oversimplified image or idea of a particular type of person or thing, often based on limited information or false assumptions.

Symbolic Self-Completion

The theory that individuals seek to acquire and display symbols that are associated with their personal goals and identity.

Ego Representation

The aspect of an individual's self-concept that reflects their conscience and the ethical part of personality, guiding behavior through moral judgments.