Suppose the Economy Is Hit by a Shock and We

question 105

Multiple Choice

Suppose the economy is hit by a shock and we observe that the price level has decreased whereas real GDP has increased.We can conclude that this shock was

• A)a positive AD shock.
• B)a negative AD shock.
• C)a positive AS shock.
• D)a negative AS shock.
• E)a negative technology shock.

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Definitions:

Physical Abuse

The infliction of bodily harm or injury onto another person through forceful actions.

Conditioning

A learning process by which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Agoraphobia

An anxiety disorder characterized by an intense fear of places or situations where escape might be difficult or help unavailable, often leading to avoidance of public places.

Stimulus Generalization

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