In Recent Years the Discussions of the Causes of Recessions

question 97

Essay

In recent years the discussions of the causes of recessions have focused on monetary policy and higher oil prices as the likely causes. Discuss how we can get insight into the likely cause by focusing on macroeconomic variables.

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment, a concept developed by B.F. Skinner.

Classical Conditioning

Classical conditioning is a learning process through which an association is made between a naturally occurring stimulus and a previously neutral stimulus.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome after the display of a behavior increases the likelihood of that behavior being repeated in the future.