If the Fed Is Worried About Increasing Inflation and Decides

question 179

Multiple Choice

If the Fed is worried about increasing inflation and decides to raise the interest rate, real GDP will

• A)remain above potential GDP if consumption is more responsive to changes in interest rates than the Fed expected.
• B)come in below potential if potential GDP is higher than the Fed expected.
• C)come in above potential GDP if some other factor acts to shift the AD curve to the left.
• D)come in below potential if investment is less responsive to changes in interest rates than the Fed expected.
• E)quickly return to potential GDP as the AD curve shifts to the left.

Describe the influence of the reticular activating system on wakefulness and sleep cycles.

Explain the role of the cerebral cortex, including sensory perception and cognitive functions.

Distinguish between different regions of the brain based on their development and functions.

Understand the function of the autonomic nervous system and differentiate between its sympathetic and parasympathetic divisions.

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Definitions:

Double-blind Studies

Research designs in which neither the participants nor the experimenters know who is receiving a particular treatment, reducing biases.

Placebo Effect

The phenomenon in which a person's condition appears to improve after taking a placebo, a treatment that has no therapeutic effect, due to the individual's belief in the treatment's efficacy.

Experimenter Effect

A phenomenon where the biases or expectations of the experimenter inadvertently influence the outcome of an experiment.

Random Assignment

A method used in experiments to evenly distribute participants across various groups, ensuring that each has an equal chance of being assigned to any group.