New Classical Economists Say That an Unanticipated Decrease in Aggregate

question 60

Multiple Choice

New classical economists say that an unanticipated decrease in aggregate demand first

• A)decreases the price level and real output, and then decreases long-run aggregate supply.
• B)decreases long-run aggregate supply, and then decreases the price level and real output.
• C)reduces short-run aggregate supply, and then reduces long-run aggregate supply.
• D)decreases the price level and real output, and then increases short-run aggregate supply such that the economy returns to the full-employment level of output.

---

Definitions:

Reinforcement Unit

A measure or instance of reinforcement, which can be positive or negative, used to increase the likelihood of a desired response or behavior.

Primary Reinforcer

A stimulus that is naturally rewarding and satisfies a basic biological need, such as food, water, or sleep.

Food

Any nutritious substance that people or animals eat or drink to maintain life and growth.

Pain

A complex sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.