Which of the Following Is an Exogenous Variable in the Dynamic

question 36

Multiple Choice

Which of the following is an exogenous variable in the dynamic model of aggregate demand and aggregate supply?

• A)E_tπ_{t + 1}, expected inflation
• B)r_t, the real interest rate
• C)π_t, inflation
• D)υ_t, supply shock

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Definitions:

Biological Clock

An internal mechanism in organisms that regulates biological rhythms and cycles, such as sleep-wake cycles, often in response to environmental cues.

Hypothalamus

A region of the brain responsible for producing hormones that regulate essential bodily functions, including temperature, hunger, and sleep.

Thalamus

The thalamus is a structure within the brain that serves as a relay station, processing and transmitting information from the senses to the appropriate areas of the brain.

Amygdala

An almond-shaped part of the brain involved in processing emotions, fear responses, and memory of emotional events.