Other Things Equal, an Increase in Aggregate Spending Tends to Be

question 121

Multiple Choice

Other things equal, an increase in aggregate spending tends to be associated with:

• A)cost-push inflation.
• B)an economic depression.
• C)a lower level of equilibrium real GDP.
• D)demand-pull inflation.
• E)an increase in the quality of goods and services produced.

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Definitions:

Evolutionary Perspective

A psychological approach that explains human thoughts and behaviors in terms of their adaptive or survival value over the course of human history.

Behavioral Perspective

A way of looking at psychological issues by studying observable behavior and what determines it, without focusing on mental states.

Nature

refers to the physical world and its phenomena, including the landscape, plants, animals, and other features and products of the earth as opposed to humans or human creations.

Nurture

The influence of environmental factors and experiences on an individual's development and behavior.