Expansionary Fiscal Policy to Prevent Real GDP from Falling Below

question 52

Multiple Choice

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of rest with no further conditioning.

Higher-Order Conditioning

Occurs when a strong conditioned stimulus is paired with a neutral stimulus, causing the neutral stimulus to become a second conditioned stimulus.

Extinction

Within the field of psychology, the slow diminishment and ultimate vanishing of a learned response occurs when a conditioned stimulus is continuously shown without pairing it with the unconditioned stimulus.

Stimulus Generalization

The psychological phenomenon where a response conditioned to one stimulus is elicited by similar, but not identical, stimuli.