In the Context of Homeostasis, When Faced with a Disruption

question 18

Multiple Choice

In the context of homeostasis, when faced with a disruption, a system tends to try to regulate and maintain:​

• A)​system disparity.
• B)​system incoherence.
• C)​system disjuncture.
• D)​system cohesion.

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Definitions:

Rational Expectations Theory

An economic theory suggesting that individuals form forecasts about the future based on all available information and past experiences, thereby influencing and typically accurately predicting future economic events.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a good or service, often leading to increased prices and decreased quantity in the market.

Long-run Results

Long-run results refer to the outcomes or effects that manifest over an extended period, considering all variables including those that are fixed in the short term can adjust over time.

Adverse Supply Shock

An unexpected event that suddenly decreases supply, leading to higher prices and lower quantities available.