If the Economy Is in a Recession and Prices Are

question 120

Multiple Choice

If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:

• A) Increased government spending or increased taxation, or a combination of the two actions
• B) Increased government spending or decreased taxation, or a combination of the two actions
• C) Increased government spending or increased taxation, but not a combination of the two actions
• D) Decreased government spending or decreased taxation, or a combination of the two actions

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Definitions:

Response and Reward

The relationship between performing a specific behavior and receiving a corresponding outcome or reward, crucial in learning and motivation.

Guthrie

A psychologist recognized for his "contiguity theory" of learning, positing that associations between stimuli and responses are established through pairing or association.

Competing Associations

In learning and memory, the concept where multiple stimuli or ideas are linked to a single response or memory, leading to potential conflicts in recall or behavior.

Stimuli

External or internal elements that elicit responses from an organism or system.