If Government Purchases Are Reduced by $1 Billion and the Economy's

question 15

Multiple Choice

If government purchases are reduced by $1 billion and the economy's MPC is 0.4,then the aggregate demand curve eventually shifts:

• A)leftward by $0.4 billion
• B)leftward by $1 billion
• C)rightward by $1.67 billion
• D)rightward by $1 billion
• E)leftward by $1.67 billion

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Definitions:

Learned Helplessness

A scenario in which an individual is plagued by feelings of helplessness, caused by either a distressing event or repeated failures to accomplish their goals.

Seligman

Known for his work on learned helplessness and its connection to depression, proposing that it results from a perceived lack of control over the outcome of a situation.

Concept

An abstract idea or a mental symbol used to represent something that is recognized and understood based on specific characteristics.

Concept Learning

The process by which individuals learn to categorize information into defined groups, based on common features or rules.