Use the Following to Answer Questions

question 91

Multiple Choice

Use the following to answer questions :
Exhibit: IS-LM to Aggregate Demand
-(Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₁ shifts to LM₂ because the price level decreases from P₁ to P₂ then, holding other factors constant:

• A) the aggregate demand curve will shift to the right.
• B) the aggregate demand curve will shift to the left.
• C) this represents a movement up the aggregate demand curve.
• D) this represents a movement down the aggregate demand curve.

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Definitions:

Social Learning

A theory that suggests individuals learn new behaviors by observing and imitating others, as well as through the rewards or punishments that follow these behaviors.

Planned Behavior

A rephrased definition from Theory of Planned Behavior: Pertains to the actions individuals intend to perform, influenced by their attitudes towards the behavior, societal pressures, and their control over the behavior.

Macrosystem Level

Pertains to the broadest context in ecological systems theory, encompassing societal norms, economic systems, and cultural values that influence an individual's development.

Mesosystem Level

A term from ecological systems theory describing interactions between different microsystems or immediate environments, like home and school.