When an Aggregate Demand Curve Is Drawn with Real GDP

question 48

Multiple Choice

When an aggregate demand curve is drawn with real GDP (Y) along the horizontal axis and the price level (P) along the vertical axis, if the money supply is decreased, then the aggregate demand curve will shift:

• A) downward and to the left.
• B) downward and to the right.
• C) upward and to the left.
• D) upward and to the right.

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Definitions:

Attribution Theory

A concept in psychology that explains how individuals pinpoint the causes of their own and others' behaviors and events.

Assess Responsibility

The process of evaluating and determining the obligations or duties of individuals or groups in specific situations.

Personal Qualities

The characteristics, traits, and attributes that define a person's behavior and mannerism.

Attribution Theory

A concept focused on how individuals interpret events and how this relates to their thinking and behavior.