All of the Following Are Likely Reasons for the 2007-09

question 53

Multiple Choice

All of the following are likely reasons for the 2007-09 recession in the United States except

• A)a rightward shift of the AD curve.
• B)an upward shift of the IA line.
• C)an increase in potential GDP.
• D)a decrease in potential GDP.
• E)an increase in aggregate supply.

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Definitions:

Systematic Desensitization

A behavioral therapy technique designed to reduce phobic responses and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.

Muscular Relaxation

The process of relieving tension in the muscles, leading to a state of physical comfort and reduced stress.

Free Association

Method used in psychoanalytic therapy in which the patient is to say anything that comes to her mind, no matter how apparently trivial, unrelated, or embarrassing.

Anxiety-Provoking Stimuli

Events, objects, or situations that evoke feelings of anxiety or substantial discomfort in individuals.