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question 65

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Use the following to answer questions: Use the following to answer questions:   -(Figure: Short-Run Equilibrium)  Refer to Figure: Short-Run Equilibrium. Appropriate fiscal policy action is: A)  a decrease in transfer payments. B)  an increase in government purchases. C)  a decrease in tax rates. D)  an increase in transfer payments.
-(Figure: Short-Run Equilibrium) Refer to Figure: Short-Run Equilibrium. Appropriate fiscal policy action is:


Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Acquisition

The initial learning of the connection between the unconditioned stimulus and the conditioned stimulus when these two stimuli are paired.

Association

A connection or linkage between thoughts, ideas, feelings, or memories, influenced by experiences or learning.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.

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