FIGURE 21-3 -Refer to Figure 21-3. in This Demand-Determined Model of the of the Macro

question 141

Multiple Choice

FIGURE 21-3
-Refer to Figure 21-3. In this demand-determined model of the macro economy, the price level is

• A) measured by Y2/0B.
• B) measured by Y1Y2/AB.
• C) increasing as the economy moves from E0 to E1.
• D) assumed to be constant.
• E) derived from the slope of the AE function.

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Definitions:

Extinction

The process by which a previously learned behavior diminishes in frequency or disappears as a result of the absence of reinforcement.

Spontaneous Recovery

A phenomenon in classical conditioning where a previously extinguished response re-emerges after a period of non-exposure to the conditioned stimulus.

Psychodynamic

A psychological perspective that emphasizes the influence of the unconscious mind on behavior.

Humanistic

Relating to or supporting the principles of humanism, emphasizing the value and agency of human beings, individually and collectively.