Refer to the Above Graph for a Private Closed Economy

question 111

Multiple Choice

Refer to the above graph for a private closed economy. If the consumption schedule shifts up by $50 B at all levels of income or output, then the equilibrium GDP will increase to:

• A) $550 B
• B) $300 B
• C) $600 B
• D) $150 B

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Definitions:

Recency Effect

The tendency to remember the most recently presented items or experiences more effectively than those presented earlier.

Long-Term Memory

The vast memory depository containing all of an individual’s knowledge and beliefs—including all those not in use at any given time.

Three-Stage Model

A framework in cognitive psychology that divides memory into three distinct stages: sensory memory, short-term memory, and long-term memory.

Long-Term Memory

The phase of the memory process that allows the storage of information over extended periods, potentially lifelong.