If People CORRECTLY Anticipate an Increase in Aggregate Demand, a Result

question 107

Multiple Choice

If people CORRECTLY anticipate an increase in aggregate demand, a result is

• A) an increase in the real value of outstanding government debt.
• B) workers demanding higher money wages to keep the real wage unchanged.
• C) a lower rate of inflation in the current time period.
• D) there are no predictable results associated with an anticipated increase in aggregate demand.

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Definitions:

Reinforcer

An element in behaviorist psychology that strengthens a behavior or increases the likelihood of its repetition.

Cognitive Learning

A style of learning that involves understanding, thinking, problem-solving, and remembering, by which knowledge is gained and retained.

Vicarious Learning

Learning that occurs by observing the behaviors of others and the outcomes of those behaviors.

Insects

A vast group of arthropods characterized by a chitinous exoskeleton, a three-part body (head, thorax, abdomen), three pairs of jointed legs, compound eyes, and one pair of antennae.