If the Economy Is Initially at Long-Run Equilibrium and Aggregate

question 87

Multiple Choice

If the economy is initially at long-run equilibrium and aggregate demand declines,then in the long run the price level

• A)and output are higher than in the original long-run equilibrium.
• B)and output are lower than in the original long-run equilibrium.
• C)is lower and output is the same as the original long-run equilibrium.
• D)is the same and output is lower than in the original long-run equilibrium.

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Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced.

Asking Questions

The act of posing inquiries or seeking information through verbal or written interrogation.

Negative Reinforcement

A behavioral psychology concept where the removal or avoidance of an unpleasant stimulus strengthens a behavior or makes it more likely to occur.

Punishment by Removal

Punishment by Removal involves decreasing the likelihood of a behavior by removing a desirable stimulus or positive condition following the behavior.