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The IS-LM Model Simultaneously Determines Equilibrium in Two Markets

question 32

Essay

The IS-LM model simultaneously determines equilibrium in two markets.
a. Which two markets?
b. What two variables adjust to bring equilibrium in the markets?


Definitions:

Retrospective Processing

The continual assessment of contingencies, which can lead to a reevaluation of prior conditioning of a conditioned stimulus (CS) with an unconditioned stimulus (UCS).

Mackintosh's Attentional

A theory explaining how the predictability of a stimulus influences its attentional control in associative learning.

Rescorla-Wagner

A model of conditioning that emphasizes the importance of the strength of the association between the conditioned and unconditioned stimulus.

CS Preexposure

A phenomenon where exposure to the conditioned stimulus before pairing it with the unconditioned stimulus can reduce the effectiveness of conditioning.

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