The Slope of the Aggregate Demand Curve Indicates That ________

question 69

Multiple Choice

The slope of the aggregate demand curve indicates that ________ in the inflation rate leads to ________ of real GDP demanded by households and firms.

• A) an increase; a higher level
• B) a decrease; a lower level
• C) a decrease; a higher level
• D) an increase; no change in the level

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Definitions:

Spontaneous Recovery

The return of a conditioned response that had previously been eliminated, following a period where the conditioned stimulus was not presented.

Extinction

In psychology, the gradual weakening and eventual disappearance of a learned response, often occurring when the reinforcement previously associated with the behavior is removed.

Stimulus Generalization

A process in which a response to a specific stimulus becomes associated to other stimuli that are similar, leading to a similar response.

Spontaneous Recovery

The reappearance of a conditioned response after a pause or period of apparent extinction.