According to the Keynesian View, If Purchasers Buy More Goods

question 47

Multiple Choice

According to the Keynesian view, if purchasers buy more goods and services than businesses expect,

• A) the inventories of firms would decline, and the firms would expand output in order to restore their inventories to desired levels.
• B) the inventories of firms would increase, and the firms would reduce output until inventories were cut back to the desired level.
• C) the current level of income would persist in the future.
• D) firms would reduce their investment, and the economy would fall into a recession.

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Definitions:

Alternating Treatments Design

An experimental design used in research to compare the effectiveness of two or more treatments by applying them alternately in quick succession.

Behavior Change

The transformation or modification of human behavior using various psychological methods, including conditioning.

Sequence Effects

The impact that the order of presenting treatments or stimuli has on the subject's behavior or responses in an experiment.

AB Design

The most basic method for graphing behavioral observations. The designation AB refers to the two phases of the design: (1) the A, or baseline, phase, and (2) the B, or intervention, phase. During the A phase, baseline data are collected and recorded. After a stable baseline trend has been established, a vertical line is drawn, and then the intervention is introduced, which signifies the beginning of the B phase. In this phase, intervention data are collected and recorded. The teacher can evaluate the effectiveness of the intervention by comparing the data trend during the B phase to the behavioral observations collected during the A phase. A problem with this design is that it is impossible to rule out alternative explanations for behavior change during the B phase.