If the Self-Correcting Mechanism Operates Quickly

question 48

Multiple Choice

If the self-correcting mechanism operates quickly,

• A)direct intervention is less necessary to close a recessionary gap.
• B)fiscal stimulus is far more useful in closing a recessionary gap than monetary policy.
• C)monetary policy is far more useful in closing a recessionary gap than fiscal policy.
• D)fiscal stimulus is ineffective and inflation will occur.

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Definitions:

Cognitive-behavioral Therapy

A type of psychotherapy that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Self-defeating Thinking

A pattern of negative thought that undermines one's confidence and ability, often leading to decreased motivation and success.

Maladaptive Actions

Behaviors that are counterproductive or interfere with one's ability to meet the demands or goals of a particular situation.

Operant Conditioning

A learning method that occurs through rewards and punishments for behavior, aimed at influencing voluntary actions.