In Our Macro Model,the Level of Aggregate Output Is Determined

question 24

Multiple Choice

In our macro model,the level of aggregate output is determined in the short run by ________ but in the long run by the level of ________.

• A)the output gap; factor productivity
• B)the AD curve; interest rates
• C)the AS curve; potential output
• D)the AD and AS curves; Y*
• E)the AD and AS curves; factor utilization

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Definitions:

Ventral Tegmental Area

A part of the brain involved in the reward circuitry and the release of dopamine, significant in motivation, pleasure, and addiction.

Dopamine

A neurotransmitter in the brain involved in regulating movement, emotion, cognition, motivation, and feelings of pleasure.

Activation

The process of stimulating something to act or function, often used in the context of neural or biochemical pathways.

Components

The constituent parts or elements that make up a system, device, or mechanism.