Consider This Excerpt from the Textbook: "In the Fall of 2007,it

question 145

Essay

Consider this excerpt from the textbook: "In the fall of 2007,it was clear that the U.S.economy was slowing.The unemployment rate rose from 4.4% to 5% between May and June 2007,and real GDP grew by just 1.7% in the fourth quarter.The U.S.economy officially entered recession in December 2007.We now know that the nation's economy was entering several years of low growth and high unemployment.Many economists believe that a decline in aggregate demand was one cause of the recession." What did the Federal Reserve do in response to this decline in aggregate demand?

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Definitions:

Internalization

The process by which children adopt adults’ standards and rules as their own.

Power Assertion

A disciplinary method involving the use of authority or physical force to control or correct behavior.

Differential Susceptibility

Some physiological makeups can make an individual more likely to be affected by environmental influences than other people. For example, a child with a highly reactive temperament might be benefited more than other children by positive parenting but harmed more than others by negative parenting.

Temperaments

Inherent traits of a person's personality that influence their behavior and emotional reactions from a young age.