If Aggregate Output Is Below the Natural Rate Level,activists of Policies

question 4

Multiple Choice

If aggregate output is below the natural rate level,activists of policies would recommend that the government

• A)do nothing.
• B)try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right.
• C)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right.
• D)try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.

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Definitions:

Sensory Adaptation

Over time, the method through which sensory receptors reduce their responsiveness to steady stimuli.

Weber's Law

A principle in psychology that states the smallest noticeable difference in stimulus intensity is proportional to the intensity of the original stimulus.

Perceptual Set

A psychological predisposition to perceive things in a certain way, influenced by expectations, emotions, and culture.

Perception

The process of organizing, interpreting, and making sense of sensory information to represent and understand the environment.