All of the Following Are Assumptions Made by the Dynamic

question 164

Multiple Choice

All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except

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

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Definitions:

Sexual Abuse

Unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims not able to give consent.

Recovered Memories

Refers to the recollection of memories, often traumatic, that were forgotten or repressed, which resurface later in life.

Misinformation Effect

The misinformation effect occurs when a person's recall of an event becomes less accurate due to the introduction of misleading information.

Exaggerated Difficulty

The perception that a task or situation is more challenging or cumbersome than it objectively is.