In the Keynesian Cross Diagram,an Increase in Investment Spending Because

question 94

Multiple Choice

In the Keynesian cross diagram,an increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.

• A)rise;left
• B)rise;right
• C)fall;left
• D)fall;right

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Definitions:

Heuristic Processing

A mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Technical Jargon

Specialized vocabulary or terminology associated with a particular field or area of expertise.

Mental Shortcuts

Cognitive strategies or simplified processes used to make decisions or judgments quickly, also known as heuristics.

Heuristic Processing

A mental shortcut that allows individuals to make decisions and solve problems quickly and efficiently, based on automatic, intuitive judgments.