At Every Point to the Right of the AD Curve

question 27

Multiple Choice

At every point to the right of the AD curve there is

• A)an excess demand for real balances.
• B)an excess supply of real balances.
• C)an excess demand for commodities.
• D)an excess supply of commodities.

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Definitions:

Hypothetical Thought

Reasoning that includes propositions and possibilities that may not reflect reality.

Analytic Thought

Thought that results from analysis, such as a systematic ranking of pros and cons, risks and consequences, possibilities and facts. Analytic thought depends on logic and rationality.

Intuitive Thought

Thought that arises from an emotion or a hunch beyond rational explanation, and is influenced by past experiences and cultural assumptions.

Egocentrism

Piaget’s term for children’s tendency to think about the world entirely from their own personal perspective.