Assuming an Upward-Sloping AS Curve,if an Economy Is at Full

question 136

Multiple Choice

Assuming an upward-sloping AS curve,if an economy is at full employment and investment spending decreases while all other levels of spending remaining constant,then

• A)A GDP gap emerges.
• B)The price level increases.
• C)Output increases.
• D)The unemployment rate falls.

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Definitions:

Operant Conditioning

A process of learning in which behavior that leads to satisfying consequences is likely to be repeated.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.

Preparedness

A psychological concept referring to the predisposition of individuals to learn certain types of behaviors or concepts more easily than others.

Phobias

An extreme or irrational fear or aversion to something.