Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

question 85

Multiple Choice

Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.


-Refer to Pessimism.What happens to the expected price level and what's the result for wage bargaining?

• A)The expected price level rises.Bargains are struck for higher wages.
• B)The expected price level rises.Bargains are struck for lower wages.
• C)The expected price level falls.Bargains are struck for higher wages.
• D)The expected price level falls.Bargains are struck for lower wages.

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Definitions:

Cholinergic Neurons

Neurons that release the neurotransmitter acetylcholine, involved in many functions including muscle contraction and memory.

Basal Forebrain

A region at the base of the forebrain that is involved in learning and memory, among other functions.

Nerve Growth Factor

A protein essential for the growth, maintenance, and survival of certain neurons, playing a critical role in neural development and regeneration.

Synaptic Pruning

The process of reducing the number of synapses, or connections between neurons, which is thought to make the brain's network more efficient.