Most Economists Agree That an Automatic Mechanism Brings the Economy

question 163

Multiple Choice

Most economists agree that an automatic mechanism brings the economy back to potential GDP in the long run.In mid-2011,two years after the recession of 2007-2009 had ended,real GDP in the United States

• A)had returned to potential GDP.
• B)had exceeded potential GDP by 1.5 percent.
• C)remained more than 7 percent below potential GDP.
• D)was predicted to never return to potential GDP.

---

Definitions:

Activated Automatically

The process where certain responses or functions are initiated without conscious decision making.

Classical Conditioning

A conditioning method where a response initially triggered by one stimulus eventually gets triggered by another stimulus, due to their repeated association.

Instrumental Learning

A learning process in which an individual learns to associate behaviors with their consequences, leading to changes in behavior.

Modelling

The process of learning behavior by observing and imitating others, often used as a technique in psychological therapy and behavior modification.