Figure 27-3 -In the New Classical Model in Figure 27-3,the Long-Run Effect

question 42

Multiple Choice

Figure 27-3
-In the new classical model in Figure 27-3,the long-run effect of an unanticipated monetary contraction ________.

• A) increases output from Yn to Y2, and the inflation rate from P1 to P2
• B) decreases output from Yn to Y4, and the inflation rate from P3 to P4
• C) does not change output and increases the inflation rate from P1 to P3
• D) does not change output and decreases the inflation rate from P3 to P1

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, fostering the association between certain behaviors and consequences.

Observational Learning

The process of acquiring new behaviors or information by observing and imitating others.

Cognitive Learning

The process of acquiring new knowledge or understanding through thought, experience, and the senses.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.