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

question 77

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:

Acculturation

The process of adaptation in which immigrants and native groups identify with a new, dominant culture by learning about that culture and making behavioral and attitudinal changes.

Self-esteem

The personal judgment of worthiness that is expressed in the attitudes the individual holds towards themselves.

Self-actualization

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Humanistic Theory

Humanistic Theory emphasizes individual potential and stresses the importance of growth and self-actualization.