If the Economy Is at Potential Output and the Fed

question 202

Multiple Choice

If the economy is at potential output and the Fed decreases the money supply, in the SHORT run the aggregate demand will likely:

• A)shift to the right.
• B)remain the same.
• C)increase.
• D)decrease.

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Definitions:

Ratio Reinforcement

A type of operant conditioning reinforcement schedule in which a response is reinforced only after a specified number of responses have occurred.

Interval Reinforcement

A type of operant conditioning scheduling wherein rewards are given to an organism at variable time intervals to encourage behavior.

Partial Reinforcement

A conditioning schedule in which a behavior is reinforced only some of the time, making the behavior more resistant to extinction.

Continuous Reinforcement

This is a learning process in behavior modification where a reward follows every correct response, enhancing the likelihood of the behavior being repeated.