The Mainstream View of Macro Instability Is That

question 169

Multiple Choice

The mainstream view of macro instability is that

• A)changes in the money supply directly cause changes in aggregate demand and thus cause changes in real GDP.
• B)changes in investment shift the aggregate demand curve and thus cause changes in real GDP.
• C)bursts of innovation put the economy on an unsustainable growth path, eventually producing recession.
• D)changes in technology and resource availability are the two main sources of fluctuations of real GDP.

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Definitions:

Classical Conditioning Theory

A conditioning technique where pairing two stimuli repeatedly results in a response, originally provoked by the second stimulus, being evoked by the first stimulus alone.

Positive Feelings

Emotions or sensations that are pleasant, uplifting, or enjoyable, contributing to a sense of well-being.

Digital Camera

An electronic device that captures and stores photographs digitally, rather than using film, allowing immediate viewing and manipulation.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.