In Response to a Decrease in Output, the Economy Would

question 142

True/False

In response to a decrease in output, the economy would revert to its original level of prices and output whether the decrease in output was caused by a decrease in aggregate demand or a decrease in short-run aggregate supply.

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Definitions:

Induction

The process of being placed into a hypnotic state.

Suggestible Personality

A trait describing individuals who are more likely to accept and incorporate ideas or attitudes suggested by others.

Decrease Anxiety

The process or methods used to reduce feelings of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Decrease Depression

To reduce the severity or frequency of symptoms associated with depression, a mood disorder characterized by persistent feelings of sadness, hopelessness, and lack of interest.