According to the Real Business Cycle Theory, During a Recession

question 49

Multiple Choice

According to the real business cycle theory, during a recession the demand for labour ________ and the supply of labour ________.

• A)increases; decreases
• B)decreases; does not change
• C)does not change; decreases
• D)decreases; decreases
• E)decreases; increases

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Definitions:

Skinner Box

An experimental apparatus created by B.F. Skinner to study animal behavior, particularly the consequences of actions on behavior.

Successive Approximations

A behavior modification technique involving the reinforcement of behaviors that are progressively closer to the desired behavior.

Reinforcing

The process of strengthening a behavior by providing a consequence that the individual finds rewarding.

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.