According to the Theory of Economic Fluctuations, Which of the Following

question 25

Multiple Choice

According to the theory of economic fluctuations, which of the following explains the relationship between aggregate demand and employment during a recession?

• A)A fall in output causes potential GDP to increase.This causes employment to decline.
• B)A fall in real GDP causes aggregate demand to fall.As a result, firms lay off workers.
• C)A fall in aggregate demand causes real GDP to fall as firms adjust their production.Workers are laid off as a result.
• D)A fall in aggregate demand causes potential GDP to fall.The resulting decline in output causes employment to fall.
• E)Workers decide they would rather have more leisure time and decide not to work as much.As a result, there is less labor employed and less is produced.

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Definitions:

Dissociative Identity Disorder

Dissociative Identity Disorder, formerly known as multiple personality disorder, is a severe form of dissociation characterized by the presence of two or more distinct personality states or identities within a single individual, accompanied by the inability to recall personal information beyond what is expected through normal forgetfulness.

Dissociative

Referring to a disruption or discontinuity in the normal integration of consciousness, memory, identity, emotion, perception, body representation, motor control, and behavior.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions.

Dissociative Disorders

Mental health conditions that involve disruptions or breakdowns of memory, awareness, identity, or perception.