In an Economy in Which Aggregate Demand Is Stable and a Period

question 50

Multiple Choice

In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be

• A) secular deflation.
• B) secular inflation.
• C) a constant price level.
• D) a shift of aggregate supply to the left.

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Definitions:

Self-Actualization

The accomplishment or actualization of individual capabilities and possibilities, viewed as a fundamental motivation or requirement in each person.

Maslow's Needs Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five levels of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Physiological And Safety

Referring to the basic needs outlined in Maslow's hierarchy, including physical well-being and security from physical danger.

Herzberg

Refers to Frederick Herzberg, a psychologist known for his theory on job satisfaction and motivation, distinguishing between hygiene factors and motivators.