Aggregate Demand Will Shift to the RIGHT If

question 37

Multiple Choice

Aggregate demand will shift to the RIGHT if:

• A) the aggregate price level increases.
• B) government purchases increase.
• C) taxes go up.
• D) the money supply shrinks.

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Definitions:

Unattended Information

Information that is present in the environment but is not the focus of attention and thus is not processed deeply or remembered well.

Filter Theory

A psychological theory proposing mechanisms for selectively attending to certain stimuli while ignoring others, particularly in contexts of processing information.

Attentional Filter

A mechanism of the brain that prioritizes certain types of information for processing while ignoring others, crucial for focusing attention.

Stroop Interference

A phenomenon that demonstrates the conflict between different information that the brain receives, affecting task performance, such as naming the color of a word when the word itself is a different color.