Economists Need Different Models of the Economy Because

question 199

Multiple Choice

Economists need different models of the economy because

• A)the economy behaves differently depending on how much time has passed after a demand shock.
• B)we need a different model to analyze a positive demand shock than we need to analyze a negative demand shock.
• C)the way economic performance is measured changes over time.
• D)prices tend to be less flexible over time.

---

Definitions:

Expectancy-value Theory

A theory which states that the motivation to engage in a behavior is determined by the expected outcomes and the value of those outcomes to the individual.

Social Needs

Fundamental human needs that pertain to belonging, affection, acceptance, and friendship, which are essential for psychological and social well-being.

Biological Needs

Basic requirements for human survival, such as air, food, drink, shelter, warmth, sex, sleep, and the excretion of waste.

Northern England

A region in England characterized by its distinct cultural, historical, and geographical features, including major cities like Manchester and Leeds.