Which of the Following Likely Occurs When Households and Firms

question 34

Multiple Choice

Which of the following likely occurs when households and firms become more pessimistic?

• A)increased spending
• B)increased aggregate demand
• C)increased real GDP
• D)an increase in the unemployment rate

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Definitions:

Positive Reinforcement

An event whose occurrence increases the frequency of the behavior that precedes it.

Conditioning Contrast

A phenomenon in classical and operant conditioning where the strength of a conditioned response changes when the reinforcement or punishment is changed in amount or type.

Primary Reinforcement

A stimulus that satisfies a basic biological need, such as food or water, which naturally and inherently reinforces a behavior.

Secondary Reinforcement

An event that has developed its reinforcing properties through its association with primary reinforcements.