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FIGURE 23-1
-Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is .Now,suppose the AE curve shifts to
and we move to a new equilibrium level of GDP at
and point E on
.A possible cause of this change in equilibrium is
Social Roles
The parts individuals play as members of a social group, which come with specific expectations, behaviors, and responsibilities.
Self-Serving Bias
is the common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.
Temporal Comparison
The process of comparing one's current self to one's past self, often used as a method of self-evaluation and motivation.
Reaction Formation
A defense mechanism in which an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.
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