A Cyclical Deficit Occurs When

question 65

Multiple Choice

A cyclical deficit occurs when

• A)government outlays are greater than revenues.
• B)government outlays are less than revenues.
• C)there is a deficit due to the fact real GDP is greater than potential GDP.
• D)there is a deficit due to the fact real GDP is less than potential GDP.
• E)there is a deficit even when real GDP equals potential GDP.

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Definitions:

Drive Theory

A theory suggesting that motivation is based on the goal of eliminating uncomfortable states that arise from physiological needs.

Punching the Wall

An act of physical aggression or frustration where an individual strikes a wall with their fist.

Positive Reinforcement

A technique in behavior modification that involves rewarding a desired behavior to increase the likelihood of it happening again.

Drive Theories

Psychological theories that describe motivation as being driven by biological needs that demand satisfaction.