Use the Following to Answer Questions

question 32

Multiple Choice

Use the following to answer questions:
Figure: Policy Alternatives
-(Figure: Policy Alternatives) Refer to Figure: Policy Alternatives. If the economy is in equilibrium at Y₁ in panel (a) and government spending increases, the result will likely be:

• A) an increase in unemployment.
• B) a decrease in interest rates.
• C) inflation.
• D) deflation.

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Definitions:

Innate Behavior

Behavior that is inherited and typical of the species; also called instinct.

Classical Conditioning

A type of learning in which an association is formed between some normal response to a stimulus and a new stimulus, after which the new stimulus elicits the response.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.

Motor Stimulus

A physical or psychological factor that induces a motor response or activity in an organism.