In the First Half of 2008, Food and Energy Costs

question 80

Multiple Choice

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A macroeconomist would support the use of _ .

• A) Keynesian; fiscal or monetary policy to stimulate aggregate demand
• B) classical; monetary policy to stimulate aggregate demand
• C) Keynesian; technology to push the economy back to full employment
• D) classical; taxes to push the economy back to full employment

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Definitions:

Latent Learning

Pertains to knowledge acquired without any immediate or visible reinforcement or outcome, becoming apparent only when needed.

Injunctive Norm

A belief about what behaviors are generally approved of or disapproved of in one’s culture.

Descriptive Norm

A belief about what most people typically do.

Conserve Water

The practice of using water efficiently to reduce unnecessary waste and to ensure its availability for future generations.