For an Economy Starting at Potential Output, an Increase in Planned

question 63

Multiple Choice

For an economy starting at potential output, an increase in planned investment in the short run results in a(n) :

• A)expansionary output gap.
• B)recessionary output gap.
• C)increase in potential output.
• D)decrease in potential output.

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Definitions:

Reciprocal Determinism

A perspective positing that individuals and their environment interact and influence each other.

Psychosocial

Relating to the interrelation of social factors and individual thought and behavior.

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.

Operant Conditioning

A learning process in psychology where behaviors are influenced by the consequences that follow them, such as rewards or punishments.