Figure 12.2

question 120

Multiple Choice

Figure 12.2:
-Using Figure 12.2,which fiscal policy action would increase aggregate demand from AD₁ to AD₂ ceteris paribus?

• A) A decrease in transfer payments
• B) A decrease in taxes
• C) A decrease in government spending
• D) An increase in saving

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Definitions:

Dissociation Theories

Theories that explain a wide array of experiences from mild detachment from immediate surroundings to more severe detachment from physical and emotional experience.

Hypnosis

Hypnosis is a trance-like mental state in which people experience increased focus, concentration, and suggestibility.

Short-term Effects

Immediate or temporary outcomes or consequences of a behavior or action.

Long-term Effects

Consequences or impacts of an action, condition, or decision that appear or persist over a long period of time.