In Short-Run Macroeconomic Equilibrium, Aggregate Quantity Demanded Equals Aggregate Quantity

question 295

True/False

In short-run macroeconomic equilibrium, aggregate quantity demanded equals aggregate quantity supplied equals potential GDP.

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Definitions:

Sublimation

A defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.

Displacement

A defense mechanism in psychoanalysis where emotional impulses are redirected from the original object to a more acceptable or less threatening object.

Defence Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety or internal conflicts.

Rationalization

The cognitive process in which individuals justify behaviors or decisions that may otherwise be unacceptable, often by creating a seemingly logical reason for them.