Exhibit 14A-5  Macro AD-AS Model Beginning in Exhibit 14A-5 from Long-Run

question 15

Multiple Choice

Exhibit 14A-5  Macro AD-AS Model Beginning in Exhibit 14A-5 from long-run equilibrium at point E₁, the aggregate demand curve shifts to AD₂. The economy's path to a new long-run equilibrium is represented by a movement from:

• A) E₁ to E₂ to E₃.
• B) E₃ to E₂ to E₂.
• C) E₁ to E₃ to E₂.
• D) E₂ to E₁ to E₂.

---

Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Motivated Behavior

Actions driven by internal or external forces that direct organisms towards specific goals.

Systematic Desensitization

A behavior therapy technique used to help individuals overcome phobias and anxiety disorders by gradually exposing them to the feared object or situation in a controlled environment.

Anxiety Hierarchy

A ranked list of stimuli that evoke anxiety, used in therapies to systematically desensitize individuals to their fears.