Isolated Negative Aggregate Supply Shocks, in the Absence of Monetary

question 46

Multiple Choice

Isolated negative aggregate supply shocks, in the absence of monetary validation, will

• A)never be self- correcting without government policy to expand the money supply.
• B)be self- correcting only if the aggregate demand curve shifts.
• C)eventually be self- correcting as wages slowly fall.
• D)have no short- run or long- run effects.
• E)result in a permanent output gap.

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Definitions:

Chaining

A method of teaching complex behaviors by breaking down the task into small steps and teaching each step within the sequence individually until the whole sequence is mastered.

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by rewarding it.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond appropriately to each.

Stimulus Generalization

The process by which a response that has been learned to one stimulus is elicited by a different, but similar, stimulus.