Expansionary Output Gaps Are Eliminated Through

question 76

Multiple Choice

Expansionary output gaps are eliminated through

• A) rising inflation and higher real interest rate settings by the Bank of Canada.
• B) rising inflation and lower real interest rate settings by the Bank of Canada.
• C) falling inflation and lower real interest rate settings by the Bank of Canada.
• D) falling inflation and higher real interest rate settings by the Bank of Canada.
• E) unchanging inflation and lower real interest rate settings by the Bank of Canada.

---

Definitions:

Observational Learning

Learning new behavior by watching a model perform that behavior.

Vicarious Learning

The process of learning behaviors by observing the actions of others and the outcomes of those actions, without directly experiencing it oneself.

Social Cognitive

Refers to the use of cognitive processes in relation to understanding the social world, emphasizing the role of observational learning, imitation, and modeling.

Psychodynamic

A theoretical approach in psychology that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.