In the Basic Closed-Economy ISLM Model,the Goods Market Equilibrium Condition

question 47

Multiple Choice

In the basic closed-economy ISLM model,the goods market equilibrium condition is

• A)output = consumption + investment + government spending.
• B)output = consumption + investment + government spending - tax.
• C)output = consumption + investment + government spending + net export.
• D)output = potential output.

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Definitions:

Stimulus Adaptation

The decrease in responsiveness of sensory receptors to a constant stimulus over time, leading to a diminished perception of the stimulus.

Response Generalization

The process by which a response applied to one stimulus becomes associated or elicited by other, similar stimuli.

Neurofeedback

Form of biofeedback using brain-scanning devices to provide feedback about brain activity in an effort to modify behavior.

Brain Wave Activity

The patterns of electrical activity in the brain, measurable by electroencephalogram (EEG), which reflect different states of consciousness.