-In the Above Figure, the Economy Is at Point a When

question 81

Multiple Choice

-In the above figure, the economy is at point A when changes occur. If the new equilibrium has a price level of 100 and real GDP of $14.0 trillion, then it must be the case that

• A) aggregate supply has increased.
• B) aggregate demand has increased.
• C) aggregate demand has decreased.
• D) aggregate supply has decreased.

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning.

Rescorla-Wagner

A model proposing that the strength of a conditioned response depends on the unexpectedness of the unconditioned stimulus.

Comparator Theory

The theory that the ability of a particular stimulus to elicit a conditioned response (CR) depends upon a comparison of the level of conditioning to that stimulus and to other stimuli paired with the unconditioned stimulus (UCS).