According to New Keynesians, an Increase in Which of the Following

question 2

Multiple Choice

According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?

• A) an anticipation of higher future inflation
• B) an expected increase in aggregate supply
• C) an unexpected decrease in aggregate demand
• D) all of the above

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Definitions:

Contingencies

In the context of behavior, it refers to the dependence of certain outcomes on specific conditions or actions.

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus strengthens a behavior or increases the likelihood of its repetition.

Punishment

A method used to reduce or eliminate undesired behaviors by applying an unpleasant stimulus or removing a pleasant one in response to the behavior.

Withdrawal of Attention

The process by which individuals stop focusing their attention on a particular stimulus or task, leading to a decrease in the perceived importance or relevance of the stimulus.