At Long-Run Equilibrium in the Dynamic Model of Aggregate Demand

question 62

Multiple Choice

At long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, the demand and supply shocks ε_t and υ_t equal _____, and current inflation π_t equals _____.

• A)0; 0
• B)0; π_{t - 1}
• C)π_t; 0
• D)ρ

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Definitions:

Operant Conditioning

A learning process through which the strength of behavior is modified by reinforcement or punishment.

Token Economy

A behavioral intervention strategy where desired behaviors are rewarded with tokens, which can be exchanged for various rewards.

Flooding

Flooding is an exposure therapy technique used in psychology to help individuals overcome phobias and anxiety disorders by exposing them to their fear triggers in a controlled environment until the fear response diminishes.

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the occurrence of the behavior.