Starting from Long-Run Equilibrium in the Dynamic Model of Aggregate

question 10

Multiple Choice

Starting from long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, a one-period positive supply shock causes output to:

• A) remain above the natural level for only one period.
• B) remain above the natural level for more than one period.
• C) remain below the natural level for only one period.
• D) remain below the natural level for more than one period.

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Definitions:

Reinforce Behavior

The process of encouraging a specific behavior to occur more frequently by applying positive or negative stimuli following the behavior.

Feedback on Behavior

Information or observations provided regarding an individual’s actions or conduct, aimed at promoting understanding or improvement.

Johari Window

A model that helps people better understand their relationship with self and others, representing information through four quadrants of known and unknown aspects.

Awareness of Ourselves

The recognition and understanding of one's own characteristics, feelings, motives, and desires.