Which of the Following Is Not an Assumption Made by the Dynamic

question 235

Multiple Choice

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?

• A)Potential real GDP increases continuously.
• B)The aggregate demand curve shifts to the right during most periods.
• C)The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.
• D)Aggregate demand and potential real GDP decrease continuously.

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Definitions:

Poisonous Frog

A type of frog that secretes toxins through its skin as a defense mechanism against predators.

Classical Conditioning

A learning mechanism whereby two stimuli are regularly connected; the reaction, first triggered by the second stimulus, ends up being triggered by the first stimulus only.

Stimulus Generalization

A learning process in which a response to one stimulus becomes associated with other similar stimuli, leading to a similar response.

Classical Conditioning

A learning process in which a biologically potent stimulus is paired with a previously neutral stimulus to elicit a conditioned response.