Use a Graph to Show the Effects of a Contractionary

question 161

Essay

Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP.Explain what happens to aggregate demand,real GDP,and the price level.

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Definitions:

Incongruence

A discrepancy between a person’s self-concept and aspects of his or her experience.

Conditional Positive Self-Regard

A state where individuals approve of themselves based on meeting certain conditions or standards set by themselves or others.

Feelings of Self-Worth

The perception of one's own value or worth as a person.

Unconditional Positive Regard

Approval granted regardless of a person’s behavior. In Rogers’s person-centered therapy, the therapist offers the client unconditional positive regard.