Economic Booms Can Cause Problems as Well as Create Benefits

question 3

Multiple Choice

Economic booms can cause problems as well as create benefits because they are often accompanied by

• A)pressure on the government budget deficit to rise.
• B)excessive labour- force participation.
• C)deflationary pressures.
• D)inflationary pressures.
• E)rising real interest rates.

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Definitions:

Negative Reinforcement

A response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Extinction

In behavioral psychology, the process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the response diminishing or disappearing.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, influencing the likelihood of that behavior being repeated.

Classical Conditioning

A method of learning that happens by linking an outside stimulus with one that naturally occurs.