Explain the Short-Run Effects on Output and the Price Level

question 151

Short Answer

Explain the short-run effects on output and the price level from a decrease in the aggregate-demand curve.

---

Definitions:

Latency Stage

A phase in Freudian psychosexual development occurring between the ages of six and puberty, characterized by a decrease in sexual interest and increase in same-sex friendships.

Oral Stage

The first stage in Freud's psychosexual development theory, occurring in the first year of life, where the mouth is the primary source of pleasure and exploration.

Anal Stage

The second stage in Freud's psychosexual development theory, occurring from about 18 months to three years of age, where the focus of pleasure is on controlling bladder and bowel movements.

Reciprocal Determinism

In social-cognitive learning theories, the two-way interaction between aspects of the environment and aspects of the individual in the shaping of personality traits.