If the AS Curve Is Upward-Sloping,the Government Alone Should Raise

question 85

True/False

If the AS curve is upward-sloping,the government alone should raise its purchases by the amount of the AD shortfall in order to reach full-employment equilibrium.
As long as the AS curve slopes upward,the aggregate demand must increase by more than the size of the recessionary GDP gap in order to achieve full employment.However,it is not necessary for the government to make up the entire shortfall in aggregate demand.Every dollar of new autonomous government spending has a multiplied impact on induced aggregate demand.

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Negative Reinforcer

A stimulus whose removal or avoidance following a behavior increases the likelihood of that behavior being repeated in the future.

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Indicates a higher probability or chance of something occurring compared to other possibilities.

Counterconditioning

A behavior therapy procedure that uses classical conditioning to evoke new responses to stimuli that are triggering unwanted behaviors.