Because of Intertemporal Substitution,an Increase in Government Spending Growth Results

question 151

Multiple Choice

Because of intertemporal substitution,an increase in government spending growth results in:

• A) a leftward shift of both the LRAS curve and the AD curve.
• B) a leftward shift of the LRAS curve but a rightward shift of the AD curve.
• C) a rightward shift of both the LRAS curve and the AD curve.
• D) a rightward shift of the LRAS curve but a leftward shift of the AD curve.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is presented without the unconditioned stimulus.

Conditioned Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.

Variable-Ratio Reinforcement Schedule

A reinforcement strategy where a response is reinforced after an unpredictable number of responses, which typically leads to high and steady response rates.

Principle of "Sameness"

This term refers to the cognitive process of recognizing and treating different stimuli as equivalent or having the same meaning or category.