Figure 11-6 -Refer to Figure 11-6. If Rational Expectations Exist and the Exist

question 116

Multiple Choice

Figure 11-6
-Refer to Figure 11-6. If rational expectations exist and the economy is initially operating at Jpoint d. If the Fed undertakes contractionary monetary policy the economy will

• A) spend some time at c with a recessionary gap.
• B) spend no time at c and move directly to b.
• C) bypass c and move to a, because the short-run aggregate supply curve shifts to the left.
• D) bypass c and move to a, because the short-run aggregate supply curve shifts immediately to the right and the economy moves down the long-run aggregate supply curve.

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Definitions:

Controlled Motivation

Motivation that is driven by external pressures or obligations rather than by personal interest or enjoyment.

Autonomy Support

Autonomy Support involves creating an environment that encourages individuals to explore, make choices, and take responsibility for their actions, fostering a sense of volition and self-direction.

Self-Determination Theory

A psychological framework for understanding human motivation in which autonomy, competence, and relatedness are identified as the key components of self-motivation and personality integration.

High Need for Achievement

Describes an individual's drive to accomplish tasks, reach standards of excellence, and persistently work hard to achieve personal goals.