The Process of an Economy Adjusting from a Recession Back

question 194

Multiple Choice

The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as

• A)monetary policy.
• B)an automatic mechanism.
• C)"releasing sticky prices."
• D)fiscal policy.

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Definitions:

Estes

Pertains to the work of William K. Estes, an American psychologist known for his research in mathematical psychology, learning theory, and memory processes.

Thorndike

Edward Thorndike was an American psychologist whose work on animal behavior and the learning process led to the theory of connectionism and helped lay the scientific foundation for modern educational psychology.

Fear of Heights

Also known as acrophobia, it is an anxiety disorder characterized by an extreme fear of high places.

Ladder

A piece of equipment consisting of a series of bars or steps between two upright lengths of wood, metal, or rope, used for climbing up or down.