Refer to Table 16.1 for the Following Question

question 42

Multiple Choice

Refer to Table 16.1 for the following question.
Table 16.1

-Refer to Table 16.1.Consider the hypothetical information in the table for potential GDP,real GDP and the price level in 2012 and in 2013 if the Reserve Bank of Australia does not use monetary policy.If the Reserve Bank of Australia wants to keep real GDP at its potential level in 2013,it should

• A) buy government securities.
• B) sell government securities.
• C) increase interest rates.
• D) increase income taxes.

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Definitions:

Effective Reinforcer

A stimulus that, when presented after a behavior, significantly increases the likelihood of that behavior occurring again in the future.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes typically leading to a change in beliefs or behaviors to reduce the discomfort.

Social Learning Theory

A theory that suggests people can learn new behaviors and information through observing others, emphasizing the importance of modeling, imitation, and social reinforcement.

Imitation and Modeling

The act of mimicking the behavior, gestures, or speech of others as a method of learning, often a key process in the development of social skills and behaviors.