Under Adaptive Expectations Theory, a Decrease in the Short-Run Aggregate

question 56

Multiple Choice

Under adaptive expectations theory, a decrease in the short-run aggregate demand curve ____ the inflation rate and ____ the unemployment rate.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Written Language

The representation of language through the use of symbols or characters, enabling communication across time and space.

Content Listening

Involves focusing on and understanding the message's content that someone is communicating, rather than merely hearing their words.

Critical Listening

The skill of analyzing and evaluating the content of a message or sound, focusing on understanding and critiquing the information.

Empathic Listening

Listening to understand the speaker’s feelings, needs, and wants so that you can appreciate his or her point of view.