Challenges to Keynesian Economics Were Based on The

question 134

Multiple Choice

Challenges to Keynesian economics were based on the:

• A) fact that lags in fiscal policy make it relatively ineffective.
• B) liquidity trap, which makes fiscal policy ineffective.
• C) possibility of a trade-off between inflation and unemployment.
• D) usefulness of discretionary fiscal policy.

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Definitions:

Negative Reinforcement

A process in behavioral psychology where a response increases because a negative condition is removed or avoided.

Secondary Reinforcer

A type of reinforcer which does not satisfy a basic biological need but has been learned to be valuable through association with primary reinforcers.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with a meaningful stimulus.

Avoidance Conditioning

A type of learning in which an individual learns a behavior to avoid an unpleasant stimulus.