Prior to the 1970s, the Model of Choice Was the Aggregate

question 36

Multiple Choice

Prior to the 1970s, the model of choice was the aggregate expenditures model. According to
This model, if the economy was in equilibrium below full employment, then the primary economic problem would be

• A) unemployment.
• B) deflation.
• C) financing the government budget deficit.
• D) financing unemployment compensation.

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Definitions:

Behaviorists

Psychologists who focus on observable behaviors and the ways in which learning influences behavior, often excluding thoughts and feelings from their study.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Forbidden Desires

Wishes or cravings that are often suppressed due to societal norms, moral considerations, or personal ethics.

Cognitive Perspective

A psychological approach that focuses on how people perceive, think about, and remember information, emphasizing mental processes in learning, memory, and problem-solving.