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:

Cochleas

Spiral-shaped organs located in the inner ear responsible for converting sound waves into electrical signals that can be interpreted by the brain.

Gustatory Perception

The sensory impression of food or other substances on the taste buds of the tongue.

Place Theory

A theory in hearing that proposes different areas of the basilar membrane respond to different frequencies.

Frequency Theory

A theory in psychology and audiology that suggests pitch is perceived by the rate at which auditory nerve fibers fire.