The Great Moderation Consensus Is That Discretionary Fiscal Policy Can

question 116

True/False

The Great Moderation consensus is that discretionary fiscal policy can be destabilizing because of the political business cycle.

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Definitions:

Behaviour Modification

A therapy approach that aims to change undesirable behaviors through the use of positive or negative reinforcement.

Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Biological Preparedness

A concept in psychology that suggests organisms are innately predisposed to form associations between certain stimuli and responses.

Conditioned Taste Aversions

A learned aversion to a particular food or drink because it has been associated with an unpleasant or nauseating experience.