The Ability to Make Immediate Sacrifices for Later Rewards Is

question 71

Multiple Choice

The ability to make immediate sacrifices for later rewards is known as ____.

• A)goal shielding
• B)incremental awareness
• C)the capacity to delay gratification
• D)learned helplessness

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Definitions:

Inflationary Gap

Occurs when equilibrium GDP is greater than full-employment GDP.

Equilibrium GDP

The level of Gross Domestic Product where aggregate supply equals aggregate demand, indicating a stable economy with no tendency for change in the price level or output.

Multiplier

Any change in spending (C, I, or G) will set off a chain reaction leading to a multiplied change in GDP. Equation is 1/(1 - MPC).

Federal Budget Deficit

A situation where the government's expenditures exceed its revenues over a specific fiscal period.