Consider the Basic AD/AS Model, and Suppose There Is a Negative

question 49

Multiple Choice

Consider the basic AD/AS model, and suppose there is a negative output gap. If an expansionary fiscal policy is pursued and the AS curve shifts right unexpectedly, the fiscal policy may be , and real GDP may
Potential GDP.

• A) too weak; stay below
• B) too weak; rise above
• C) too strong; stay below
• D) too strong; rise above
• E) appropriate; equal

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Definitions:

Extrinsic Rewards

External incentives given to employees or individuals, such as money, trophies, or recognition, to motivate behavior or performance.

Behavior Therapy

A form of mental health treatment aimed at altering unwanted behaviors by using methods of conditioning.

Behavior Control

The process of regulating or directing actions and responses to achieve desired outcomes.

Transference

In psychoanalysis, the process by which patients project feelings about significant people in their lives onto the therapist.