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If the AD Curve Is Relatively Flat, the Fed Is

question 117

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If the AD curve is relatively flat, the Fed is willing to accept large changes in output to keep the price level stable.


Definitions:

Shaping

The process of reinforcing successive approximations of a desired behavior to teach new behaviors.

Classical Conditioning

A learning process wherein a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Negative Reinforcement

A behavior modification method that involves the removal of an unpleasant stimulus to increase the likelihood of a desired behavior.

Cumulative Record

A continuous record that shows the total number of times a response occurs in a given time period.

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