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According to the New Classical Theory, Why May Output Differ

question 27

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According to the New Classical theory, why may output differ from its full-employment level in the short run?


Definitions:

Factor Analysis

A statistical technique that explains the variance among observed, related variables through a smaller number of latent variables, known as factors.

Genetically Based

Characteristics or traits that are influenced by genes inherited from one's parents.

Cattell's Research

Research conducted by psychologist Raymond Cattell that focused on the study of personality and intelligence using factor analysis.

Personality

The compilation of various qualities and characteristics that shape an individual's distinctive personality.

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