In the Aggregate Demand-Aggregate Supply Model, If the Federal Reserve

question 25

Multiple Choice

In the aggregate demand-aggregate supply model, if the Federal Reserve decides to decrease the nominal money supply,

• A)current output will fall, but the price level will rise.
• B)current output will rise, but the price level will fall.
• C)current output and the price level will both rise.
• D)current output and the price level will both fall.

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Definitions:

Continuous Reinforcement

A learning schedule in which every correct response is followed by a reward, facilitating faster learning.

Gradual Reinforcement

A process in operant conditioning where reinforcement is slowly introduced or varied to shape behavior.

Positive Reinforcer

A stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring again.

Punisher

A stimulus or event that follows a behavior and decreases the likelihood of that behavior occurring in the future.