If Aggregate Demand Equals Output

question 38

Multiple Choice

If aggregate demand equals output,

• A)the economy is in a recession.
• B)output will increase.
• C)output will fall.
• D)the economy is at its equilibrium level.

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Definitions:

Conditioned Stimulus

An initially neutral trigger that, after being paired with an unconditioned stimulus, in time invokes a conditioned response.

Unconditioned Stimulus

A stimulus that inherently and instinctively induces a reaction without the need for previous learning.

Negative Punishment

The removal of a desirable stimulus after a behavior, which decreases the likelihood of the behavior occurring again.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior; for example, scolding a pet to stop it from engaging in unwanted behavior.