To Restore Growth and Reduce Unemployment in Response to a Negative

question 143

Multiple Choice

To restore growth and reduce unemployment in response to a negative real shock,the Federal Reserve would:

• A) decrease the money growth rate,which will lower both the inflation rate and economic growth rate.
• B) decrease the money growth rate,which will increase both the inflation rate and economic growth rate.
• C) increase the money growth rate,which will lower both the inflation rate and economic growth rate.
• D) increase the money growth rate,which will increase both the inflation rate and economic growth rate.

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Definitions:

Spontaneous Recovery

The reemergence of a previously extinguished conditioned response after a pause.

Classical Conditioning

A teaching process in which two stimuli are repetitively paired; a response first initiated by the second stimulus eventually becomes initiated by the first stimulus alone.

Tone

In linguistics, the quality of a sound, especially in speech, that expresses a particular meaning or emotion; in music, the specific quality or pitch of a sound.

Airpuff

A burst of air directed towards a specific target, often used in psychological experiments to study blink reflexes or other sensory responses.