If Nominal GDP Growth in an Economy Is a Constant

question 109

Multiple Choice

If nominal GDP growth in an economy is a constant 7 percent,the economy's long-run equilibrium is at Y equal to ________ with inflation of ________.

• A)100,zero
• B)100,7 percent
• C)107,zero
• D)107,7 percent
• E)103.5,3.5 percent

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Definitions:

Extinction

The process in which a conditioned response decreases in frequency and eventually disappears due to the absence of reinforcement.

Novel Stimulus

A new or unfamiliar stimulus that has not been previously encountered by the organism.

Calming Event

An occurrence or intervention designed to reduce stress, anxiety, or excitement, often leading to a state of relaxation.

Flavor Aversion Conditioning

Flavor Aversion Conditioning is a learning process where individuals develop a dislike or aversion to a flavor after it has been paired with sickness or nausea.