Which of the Following Likely Occurs When Households and Firms

question 62

Multiple Choice

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

• A)Increased spending.
• B)Increased aggregate demand.
• C)Real GDP rises.
• D)The unemployment rate increases.

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Definitions:

Habituation

The process by which an organism becomes accustomed to a stimulus after repeated exposures, leading to a decrease in response.

Classical Conditioning

A form of learning in which an environmental stimulus becomes associated with stimuli that elicit reflex responses.

Operant Conditioning

A form of learning in which behavior increases or decreases based on environmental consequences.

Neurogenesis

The process of generating new neurons in the brain, which continues throughout life in certain areas of the brain.