FIGURE 23-5 -Refer to Figure 23-5.Suppose That an Increase in Government Purchases

question 128

Multiple Choice

FIGURE 23-5
-Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases?

• A)30
• B)40
• C)50
• D)12
• E)not enough information to know

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Definitions:

Parallel Processing

The capability of the brain to process different types of incoming stimuli at the same time.

Focus Attention

The mental process of concentrating on one aspect of the environment while ignoring others, a fundamental aspect of cognitive processing.

Information Processing

A cognitive approach that emphasizes the way people encode, store, process, and retrieve information.

Conscious Processing

The mental activities and cognitive processes that occur within awareness, allowing for intentional thought and decision-making.