Which Situation Would Induce a Shift of the Aggregate Demand

question 233

Multiple Choice

Which situation would induce a shift of the aggregate demand to the right?

• A) price level and government expenditures decreased
• B) price level decreased, and the government instituted an investment tax credit
• C) stock prices and the money supply increased
• D) bank rate increased, and the dollar appreciated

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Definitions:

Abraham Maslow

An American psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Self-efficacy

The belief in one's ability to succeed in specific situations or accomplish a task, which can play a significant role in how one approaches goals, tasks, and challenges.

Reciprocal Determinism

A concept in social psychology that suggests individual behavior, environment, and cognitive factors influence each other in a bidirectional fashion.