When Aggregate Demand Is High,risking Higher Inflation,those in Favor of Using

question 39

Multiple Choice

When aggregate demand is high,risking higher inflation,those in favor of using monetary and fiscal policy to stabilize the economy might recommend

• A)increasing government spending.
• B)expanding the money supply.
• C)lowering taxes.
• D)the Fed sell government bonds.

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Definitions:

Negative Reinforcement

Negative Reinforcement is a behavioral concept where removing an unwanted stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Legitimate Power

Legitimate Power is the authority that a person or organization has that is viewed as rightfully held, often given by a higher authority or institution.

Reward Power

The capability of influencing others’ behavior by offering them something desirable as a means of motivation or incentive.

Agency Leaders

Senior individuals in charge of directing and managing an organization or agency.