Temporal Effects Include

question 327

Multiple Choice

Temporal effects include

• A)the purpose of the purchase.
• B)the presence of other people.
• C)the time of day of the purchase.
• D)the crowding in retail stores.
• E)the consumer's mood while engaged in the purchase.

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Definitions:

Natural Rate

The rate of a quantity, such as unemployment or interest, that prevails when the economy is in a long-term equilibrium.

Classical Dichotomy

The theoretical separation of nominal and real variables in classical economics, suggesting that changes in the money supply only affect nominal variables.

Inflation Rate

An upward movement in the overall price level of goods and services in an economy over time.

Aggregate Demand

Aggregate request for products and services in an economy, measured at a particular general price level throughout a defined time interval.