Figure 10.2 -Refer to Figure 10.2.Assume the Economy Is Initially at Equilibrium

question 53

Multiple Choice

Figure 10.2

-Refer to Figure 10.2.Assume the economy is initially at equilibrium at potential GDP of $500 billion.If the MPC = 0.80 ,and real GDP falls to Y₂ = $400 billion,the vertical distance between AE₁ and AE₂ must be

• A) $8 billion.
• B) $20 billion.
• C) $80 billion.
• D) $100 billion.

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Definitions:

Conditioned Stimulus

A stimulus that originally had no effect but, through being paired with an unconditioned stimulus, eventually elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without needing to be learned.

Observational Learning

The learning process through which behavior is acquired by observing and imitating the actions of others.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, aiming at increasing or decreasing certain behaviors.