Use the Following to Answer Questions

question 138

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 LM₃ shifts to LM₂ because the money supply decreases from M₃ to M₂ 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.

---

Definitions:

Dramatic Behavior

Actions characterized by excessive emotionality or attention-seeking, often seen in theatrical performances or in everyday interactions.

Guilt Feelings

Emotional experiences that occur when a person believes or perceives they have compromised their own standards of conduct or a moral standard.

Impulsive Behavior

Actions taken without forethought or consideration of the consequences, often driven by immediate desires or reactions.

Emotional Outbursts

Sudden and intense expressions of emotion, often resulting from feelings of anger, frustration, or overwhelm.