Prior to the 1970s, the Model of Choice Was the Aggregate

question 90

Multiple Choice

Prior to the 1970s, the model of choice was the aggregate expenditures model. According to
This model, if the economy was in equilibrium at an income greater than the full employment level, then the primary economic problem would be

• A) excessive bank lending.
• B) potential crises in financial markets.
• C) inflation.
• D) excess aggregate demand.

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Definitions:

Knowledge Acquisition

The process through which individuals gather information and learn new concepts, skills, and behaviors.

Modularity Position

The view in cognitive science that the mind is composed of distinct, specialized modules, each responsible for different cognitive functions, such as language acquisition or face recognition.

Language Acquisition Device

A hypothetical module of the human brain posited by Noam Chomsky that allows people to understand language structure and acquire language.