Deflation Can Start with

question 192

Multiple Choice

Deflation can start with

• A) an increase in aggregate demand.
• B) a decrease in aggregate demand.
• C) a decrease in aggregate supply.
• D) Both answers B and C are correct.

---

Definitions:

Denial

An ego defense mechanism in which a person fails to acknowledge unacceptable thoughts, feelings, or actions.

Impulses

Sudden, involuntary urges to act or react that can drive behavior without conscious planning.

Ego

In psychoanalytic theory, the part of the psyche that mediates between the desires of the id, the realities of the external world, and the moral standards of the superego.

Libido

A term that describes one's overall sexual drive or desire for sexual activity.