Economists Predict the Business Cycle Well Enough That Stabilization Policy

question 153

True/False

Economists predict the business cycle well enough that stabilization policy is likely to work despite lags in the effects of policy.

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Definitions:

Edward Thorndike

An American psychologist known for his work on the theory of learning based on the idea of connectionism, and for his contribution to educational psychology.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior over the study of the mind.

Alfred Bandura

A psychologist known for his work on social cognitive theory and the concept of self-efficacy, as well as his study on observational learning demonstrated through the Bobo doll experiment.

Positive Punishment

Adding an unfavorable outcome or event following an undesired behavior to decrease the likelihood of that behavior occurring again.