Which of the Following Likely Occurs When Households and Firms

question 34

Multiple Choice

Which of the following likely occurs when households and firms become more pessimistic?

• A)increased spending
• B)increased aggregate demand
• C)increased real GDP
• D)an increase in the unemployment rate

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Definitions:

Human Behaviour

The range of actions and mannerisms exhibited by humans in conjunction with their environment, social structures, and culture.

Structuralism

An early school of psychology that used introspection to explore the elemental structure of the human mind.

Functionalism

A framework in psychology that emphasizes the purpose of mind and behavior in adapting to the environment.

Introspection

The examination or observation of one's own mental and emotional processes.