An Assumption of _______ Is More Plausible for Studying the Short-Run

question 45

Multiple Choice

An assumption of _______ is more plausible for studying the short-run behavior of the economy, while an assumption of ______ is more plausible for studying the long-run, equilibrium behavior of the economy.

• A) deflation; inflation
• B) inflation; deflation
• C) flexible prices; sticky prices
• D) sticky prices; flexible prices

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Definitions:

Operant

In psychology, an operant is any behavior that is strengthened or weakened by the consequences it produces.

Conscious Control

The deliberate use of one's awareness and intentions to guide actions or thoughts, often in self-regulation or decision making.

Employee Performance

The level of effectiveness and efficiency with which an employee carries out their assigned tasks and responsibilities.

External Events

Occurrences outside an organization that can impact its operations, strategies, and success, often unpredictably.