The Recession in Real GDP in 1970 During the Nixon

question 23

Multiple Choice

The recession in real GDP in 1970 during the Nixon administration

• A) did not accord with the Keynesian theory because the price level had risen sharply; in the Keynesian model, prices fell when real GDP and employment were falling.
• B) reinforced the Keynesian theory that prices fell when real GDP and employment were falling.
• C) did not accord with the Keynesian theory because expansionary fiscal policies resulted in deflation; in the Keynesian model, prices rose when expansionary fiscal policies were administered to eliminate a recessionary gap.
• D) reinforced the Keynesian theory that fiscal policies were more effective than monetary policies in reducing output gaps.

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Definitions:

Punished Behaviors

Actions that are met with negative consequences, aiming to decrease the likelihood of those actions being repeated in the future.

Extinction

The process by which a species, genus, or family of organisms becomes permanently lost or dies out.

Therapist

A professional trained in methods of psychological or physical rehabilitation, providing treatment for emotional, behavioral, and mental disorders.

Operant Behavior

Behavior that is controlled or influenced by its consequences, such as rewards or punishments.