If Output Starts Below the Natural Rate, and the Central

question 25

Essay

If output starts below the natural rate, and the central bank reduces the interest rate to shift AD and raise output back to the natural rate, what is the difference in the response of AS under the new Keynesian and new Classical models?

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Corrective Action

Steps taken to identify, eliminate, and prevent recurrence of undesirable performance or behavior in an organizational context.

Discipline

Action that develops self-control, efficiency, and orderly conduct; regulation, training, and enforcement. Discipline problems include permissiveness, rigidity, and inconsistency. Elements of effective discipline include defined roles and responsibilities, clear rules and guidelines, and methods for taking corrective action.

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