According to the Simple Extended AD-AS Model, If the Economy

question 91

True/False

According to the simple extended AD-AS model, if the economy is in a recession, prices and
nominal wages will eventually fall and the short-run aggregate supply curve will increase, so that
real output returns to its full-employment level in the long run.

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Definitions:

Neurons

Special cells within the nervous system that communicate information via electrical and chemical signals.

Cerebellum

A part of the brain at the back of the skull in vertebrates, which is responsible for coordinating and regulating muscular activity.

Amygdala

A region of the brain involved in experiencing emotions, notably fear and pleasure, and in forming emotional memories.

Neuroplasticity

The ability within the brain to constantly change both the structure and function of many cells in response to experience or trauma.