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.

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Definitions:

Operant Conditioning

A learning process in which an action’s consequences determine how likely an action is to be performed in the future.

Vicarious Conditioning

Learning the consequences of an action by watching others being reinforced or punished for performing the action.

Sensitization

An increase in behavioral response after lengthy or repeated exposure to a stimulus.

Tabula Rasa

The idea that individuals are born without built-in mental content, and all knowledge comes from experience or perception.