When a Central Bank Attempts to Stop a Constant Inflation,it

question 35

Multiple Choice

When a central bank attempts to stop a constant inflation,it tries to remove the inflationary gap by

• A)shifting the AS curve upward.
• B)shifting the AS curve downward.
• C)increasing the rightward shift of the AD curve.
• D)stopping the rightward shift of the AD curve.
• E)taking no action and allowing the market to correct itself.

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Definitions:

Bandura

Bandura refers to Albert Bandura, a psychologist best known for his work on social learning theory and the concept of self-efficacy.

Ellis

Refers to Albert Ellis, an American psychologist who developed Rational Emotive Behavior Therapy (REBT), a precursor to cognitive behavioral therapy.

Aversive Conditioning

A psychological process of learning involving the use of unpleasant stimuli to stop or change unwanted behaviors.

Unpleasant Consequences

Negative outcomes or penalties that follow undesired actions or behaviors, often used as deterrents.