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Show the Short-Run Impact of the Following Factors on GDP

question 172

Essay

Show the short-run impact of the following factors on GDP using a graph of the aggregate goods and services market. Assume the economy was originally in long-run equilibrium.
a.a stock market crash
b.a decrease in the real interest rate
c.a flood that destroys most agricultural crops
d.a decrease in resource prices
e.an increase in the labor force
f.an increase in the expected inflation rate


Definitions:

Zone Of Proximal Development

The difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Neo-Piagetians

Developmentalists who have elaborated on Piaget’s theory, believing that children’s cognitive development is more specific in many respects than Piaget thought and giving more emphasis to how children use memory, attention, and strategies to process information.

Zone Of Proximal Development

A concept in Vygotsky's theory that represents the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Scaffolding

An educational technique that involves giving students support at the beginning of a learning process and gradually removing it to promote independent learning.

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