A Persistent Decline in the Price Level Resulting from Economic

question 286

Multiple Choice

A persistent decline in the price level resulting from economic growth in the presence of stable aggregate demand is known as

• A) demand-side deflation.
• B) the interest rate effect.
• C) secular deflation.
• D) the real balance effect.

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Definitions:

Modelling Effect

The process by which individuals learn behaviors, norms, or attitudes by observing the actions of others, often significant in social learning theory.

Vicarious Learning Experience

Learning that occurs by observing the actions and consequences of others' behaviors rather than through direct experience.

Modelling

Tendency for a person to reproduce the actions, attitudes, and emotional responses exhibited by a real-life or symbolic model. Also called observational learning.

Social Loafing

A reduction in individual effort when working on a collective task (one in which our outputs are pooled with those of other group members) compared with working either alone or coactively (our outputs are not pooled).