Which of the Following Best Describes Movement Along the AD

question 8

Multiple Choice

Which of the following best describes movement along the AD curve?

• A) A change in the inflation rate causes the central bank to change interest rates, thereby causing a corresponding proportional change in investment.
• B) A sudden increase in the tax rate.
• C) A change in monetary policy.
• D) A change in the inflation rate causes the federal government to reduce discretionary spending.
• E) A change in unemployment causes the federal government to reduce discretionary spending.

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Definitions:

Learned Helplessness

A condition of passivity apparently created by exposure to inescapable aversive events. This condition inhibits or prevents learning in later situations in which escape or avoidance is possible.

Systematic Desensitization

A behavioral therapy technique used to reduce phobia or anxiety through gradual exposure to the feared object or situation while teaching relaxation strategies.

Rational-Emotive Therapy

A form of cognitive-behavioral therapy developed by Albert Ellis that focuses on identifying and changing irrational beliefs and attitudes.

Sensitivity Training

A form of training designed to help individuals develop empathy and improve interpersonal communication through better understanding of others' feelings and perspectives.