In the IS-LM Model, General Equilibrium Refers to a Situation

question 57

Multiple Choice

In the IS-LM model, general equilibrium refers to a situation in which

• A) there is full employment in an economy.
• B) the goods market and money market in an economy are both in equilibrium.
• C) the goods market and money market in an economy are both in equilibrium and there is full employment in that economy.
• D) the markets for all goods and services in an economy are in equilibrium.

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Definitions:

Behaviorism

Behaviorism is a theory of learning based on the idea that all behaviors are acquired through conditioning and that the environment shapes behavior.

Social-cognitive Perspective

A psychological approach that highlights the importance of cognitive functions in interpreting social actions.

Temperaments

Innate parts of our personality that influence our reactions to the environment, including our activity level, emotional intensity, and sociability.

Self-concepts

An individual's perception of their own strengths, weaknesses, and unique qualities.