If Nominal National Income Increased by 10% Over a Certain

question 69

Multiple Choice

If nominal national income increased by 10% over a certain period of time while real national income increased by 20%,then

• A)everybody in the economy became worse off.
• B)inflation has occurred during this time period.
• C)the labour force increased by 10%.
• D)the price level has declined by about 10%.
• E)the price level has increased by approximately 10%.

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Definitions:

Shaping

A method used in behavioral training where successive approximations of a desired behavior are reinforced.

Successive Approximations

A method in behavior therapy and training in which complex behaviors are broken down into simpler steps, and these steps are learned gradually to achieve the target behavior.

Negative Reinforcement

A form of reinforcement in which the removal or avoidance of an unpleasant stimulus increases the probability of a behavior being repeated.

Tertiary Reinforcement

A type of reinforcement that uses a stimulus associated with primary or secondary reinforcers to modify behavior.