When Actual Output Is Less Than Potential Output, There Is

question 9

Multiple Choice

When actual output is less than potential output, there is ________ output gap and the rate of inflation will tend to ________.

• A)an expansionary; increase
• B)an expansionary; decrease
• C)a recessionary; decrease
• D)a recessionary; increase

---

Definitions:

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Cognitive Processing Theory

A theory focusing on the thought processes that underlie learning, suggesting that individuals actively process information and this processing influences learning.

Operant Conditioning

A learning method that uses rewards and punishments to influence behavior.

Social Learning Theory

A theory that suggests individuals learn behaviors, norms, and values by observing and imitating others, especially those in socially influential positions.