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If the Economy Is on the Flat Part of the Aggregate

question 121

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If the economy is on the flat part of the aggregate supply curve, contractionary fiscal policy works well to decrease the price level with little decrease output.


Definitions:

Number

An object in mathematics utilized for counting, measuring, and labeling purposes.

Rehearsal

The practice of repeatedly going over information or skills to embed them in memory or improve proficiency.

Acquisition

In classical conditioning, the initial stage, when one links a neutral stimulus and an unconditioned stimulus so that the neutral stimulus begins triggering the conditioned response. In operant conditioning, the strengthening of a reinforced response.

Encoding

The process of getting information into the memory system—for example, by extracting meaning.

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