What Does the Coefficient a in the New Classical Expression

question 42

Multiple Choice

What does the coefficient a in the new classical expression for short-run aggregate supply represent?

• A) the full employment level of output
• B) the price level in the previous period
• C) how much output responds when the actual price level differs from the expected price level
• D) how much the price level responds when the actual level of output differs from the full-employment level of output

---

Definitions:

Ventricular Hydrocephalus

Ventricular hydrocephalus is a condition characterized by excessive accumulation of cerebrospinal fluid in the ventricles of the brain, leading to increased pressure and potential damage to brain tissues.

Blockage of CSF

An obstruction in the flow of cerebrospinal fluid (CSF), which can lead to conditions like hydrocephalus, influencing brain pressure.

Thalamus

A brain structure that acts as a relay center, processing and transmitting sensory and motor signals to the cerebral cortex.

Third Ventricle

A median cleft between the two halves of the brain that is filled with cerebrospinal fluid.