-Refer to Exhibit 10-7

question 12

Multiple Choice

-Refer to Exhibit 10-7.If autonomous consumption increases,which of the following is possible?

• A) The AD curve will shift rightward from AD₁ to AD₂,the price level will remain constant,and Real GDP will rise.
• B) The AD curve will shift leftward from AD₄ to AD₃,the price level will fall,and Real GDP will remain constant.
• C) The AD curve will shift rightward from AD₃ to AD₄,the price level will remain constant,and Real GDP will rise.
• D) The AD curve will shift rightward from AD₁ to AD_2, the price level will rise,and Real GDP will remain constant.

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Definitions:

Army Alpha

A historical standardized test developed during World War I to assess the intellectual and cognitive abilities of military recruits.

Inkblot Test

A projective psychological test consisting of ambiguous inkblots presented to a subject, whose interpretations of the blots are analyzed to give insights into their personality and emotional functioning.

Thematic Apperception Test

A projective psychological test that uses storytelling in response to pictures to assess personality and emotional functioning.

Interest Inventories

Tests that measure likes and dislikes as well as one’s personality orientation toward the world of work. Generally used in career counseling. It is a type of personality test.