Suppose a Stock Market Crash Makes People Feel Less Wealthy

question 48

Multiple Choice

Suppose a stock market crash makes people feel less wealthy. What are the effects of this decrease in wealth?

• A) a decrease in consumption, which shifts aggregate supply left
• B) a decrease in consumption, which shifts aggregate demand left
• C) an increase in consumption, which shifts aggregate supply right
• D) an increase in consumption, which shifts aggregate demand right

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Definitions:

Unconscious Sexual Feelings

Sexual desires or thoughts that are not consciously acknowledged but influence behaviors and emotions.

Latency

A period in psychosexual development in childhood, from around age five to puberty, characterized by a decrease in sexual urges and interests.

Psychosexual Stage

A concept in Freudian psychology that describes the stages of an individual's development from birth to adulthood in terms of the discovery and satisfaction of sexual desires.

Oral Stage

A phase in Freudian psychoanalytic theory occurring in the first year of life, where an infant's pleasure centers on the mouth during activities like tasting and sucking.