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:

Classical Conditioning

refers to a learning process that occurs when two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Escape Learning

A form of learning in which an organism acquires a response to end an aversive stimulus, effectively learning to avoid discomfort or negative outcomes.

Principle Of Belongness

The theory that states individuals have an innate desire to belong and be an integral part of groups.

Pigeon

A bird of the family Columbidae, known for its ability to find its way home over long distances and commonly found in urban and rural areas worldwide.