Two Potential Problems with Macro Equilibrium Are

question 36

Multiple Choice

Two potential problems with macro equilibrium are

• A)Undesirability and instability.
• B)The profit effect and the real balance effect.
• C)External shocks and policy levers.
• D)Multiple shifts to AS and AD.Macro equilibrium may be short-lived and may or may not occur at full employment and acceptable inflation levels.

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Definitions:

Attitude Inoculation

A method of making individuals resistant to attempts to change their attitudes by initially exposing them to small arguments against their beliefs.

Self-Presentational Concerns

The efforts individuals make to create specific impressions of themselves in the minds of others.

Planned Behavior

Refers to the Theory of Planned Behavior, which is a psychological theory that links belief systems to behavior, positing that behavioral intention is influenced by attitudes, subjective norms, and perceived control over the behavior.

Prevention Focus

A motivation based on the desire to avoid negative outcomes or failures, leading to cautious and conservative strategies in goal pursuit.