If the Current AD Curve Intersects the LAS Curve at a Positive

question 47

Multiple Choice

If the current AD curve intersects the LAS curve at a positive price level,can self-correction be thwarted?

• A)No: it is inevitable.
• B)Yes: via the Pigou effect.
• C)Yes: via downwardly-rigid wages.
• D)Yes: via monetary impotence.

---

Definitions:

Watson

John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over internal mental states.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning and interaction with the environment, minimizing the role of heredity.

Skinner

B.F. Skinner, an influential American psychologist, known for his work in behaviorism and for developing the theory of operant conditioning.

Structuralism

A methodological principle in psychology and social sciences focusing on analyzing the basic components of complex phenomena, traditionally associated with Wilhelm Wundt and Edward Titchener.