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question 67

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Use the following to answer questions:
Figure: Fiscal Policy I Use the following to answer questions: Figure: Fiscal Policy I   -(Figure: Fiscal Policy I)  Look at the figure Fiscal Policy I. Suppose that this economy is in equilibrium at E<sub>2</sub>. If there is an increase in taxes_____ will shift to the _____, causing a(n)  _____ in the price level and a(n)  _____ in real GDP. A) AD<sub>2;</sub> left; increase; decrease B) AD<sub>2;</sub> left; decrease; decrease C) AD<sub>1;</sub> right; increase; increase D) AD<sub>1;</sub> right; decrease; increase
-(Figure: Fiscal Policy I) Look at the figure Fiscal Policy I. Suppose that this economy is in equilibrium at E2. If there is an increase in taxes_____ will shift to the _____, causing a(n) _____ in the price level and a(n) _____ in real GDP.


Definitions:

Inattentional Blindness

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to their focus on a different task or aspect of their environment.

Change Blindness

A phenomenon where an observer does not notice a significant change in a visual scene, indicating limitations in attention and perception.

Change Blindness

A phenomenon where a person does not notice some significant change in the visual field, indicating limitations in attention and perception.

Inattentional Blindness

a psychological lack of attention that is not associated with any vision defects or deficits, where an individual fails to perceive an unexpected stimulus that is in plain sight.

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