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Use the following to answer questions:
Figure: Inflationary and Recessionary Gaps Use the following to answer questions: Figure: Inflationary and Recessionary Gaps   -(Figure: Inflationary and Recessionary Gaps)  Look at the figure Inflationary and Recessionary Gaps. A movement from AD<sub>1</sub> to AD<sub>3</sub> could be caused by: A) increased government purchases. B) decreased government transfers. C) higher tax rates. D) decreased government purchases.
-(Figure: Inflationary and Recessionary Gaps) Look at the figure Inflationary and Recessionary Gaps. A movement from AD1 to AD3 could be caused by:


Definitions:

Stress Appraisal

The process by which individuals evaluate and cope with a stressful situation, determining its significance and how to manage it.

General Adaption Syndrome

A three-stage model (alarm, resistance, exhaustion) describing the physiological changes the body undergoes in response to chronic stress.

Immune Deficiencies

Situations in which the ability of the immune system to combat infectious diseases and cancer is weakened or completely lacking.

Stress Reaction

The physical, mental, or emotional response to an event or condition that disturbs the balance or equilibrium of a person's state.

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