Growth in Aggregate Demand Will

question 135

Multiple Choice

Growth in aggregate demand will

• A)cause deflation.
• B)increase unemployment.
• C)move the economy to a higher point on the short-run Phillips curve.
• D)cause the short-run Phillips curve to shift to the left.

Identify the conditions for social optimality in the presence of externalities.

Calculate the optimal level of subsidy or tax required to achieve social optimality.

Interpret graphical representations of markets with externalities.

Understand the concept of equilibrium quantity in markets with and without externalities.

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Definitions:

Oedipal Crisis

An Oedipal Crisis, in Freudian theory, is a phase in a child's development characterized by conflicting emotions toward the opposite-sex parent and envy or rivalry toward the same-sex parent.

Denial

In psychoanalytic theory, the defense mechanism that allows the mind to deny that a current source of anxiety exists.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety arising from unacceptable thoughts or feelings.

Neo-Freudian Psychologist

A psychologist belonging to a movement that adapted and extended Freud's theories, focusing more on social and cultural factors for personality.