Use the Figure Below to Answer the Following Question(s)

question 124

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 10-17
-Suppose an economy is currently operating at output Y₁ associated with AD₁ and SRAS₁, shown in Figure 10-17. Initially, the output of this economy is

• A)above its potential, and the rate of unemployment is greater than the natural rate.
• B)below its potential, and the rate of unemployment is greater than the natural rate.
• C)above its potential, and the rate of unemployment is less than the natural rate.
• D)below its potential, and the rate of unemployment is less than the natural rate.

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Definitions:

Contingency

Describes a future event or circumstance that is possible but cannot be predicted with certainty.

Operant Conditioning

A learning process in which the strength of a behavior is modified by its consequences, such as reward or punishment.

Extinction

Within the field of psychology, a conditioned response gradually fades and ultimately vanishes.

Unconditioned Stimulus

Within the framework of classical conditioning, a stimulus inherently and spontaneously elicits a reaction without the necessity of prior learning.