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Statement I: According to the rational expectations theory,the prime economic mover is aggregate supply,not aggregate demand.
Statement II: Unlike the "old" classical economists of the 19th century,the rational expectationists of today believe that government intervention to affect aggregate demand is sometimes necessary.
Autonomic Nervous System
The part of the nervous system that controls involuntary actions, such as the heartbeat and digestion, and regulates basic body processes.
Inverted-U Hypothesis
A theory suggesting that there is an optimal level of arousal for performance, with both too little and too much arousal leading to poorer performance.
Optimal Level
The most favorable or desirable degree or amount of something for achieving the best result or outcome.
Actual Stressors
Real and tangible factors in one's environment that cause stress.
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