When We Say That Economic Fluctuations Are "Irregular and Unpredictable

question 28

Multiple Choice

When we say that economic fluctuations are "irregular and unpredictable," we mean that

• A)the relationship between output and unemployment is erratic and difficult to characterize.
• B)when one macroeconomic variable that measures income or spending is falling,other macroeconomic variables that measure income or spending are likely to be rising.
• C)recessions do not occur at regular intervals.
• D)All of the above are correct.

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Definitions:

Generalization

In psychology, the tendency to respond in the same way to different but similar stimuli.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period without exposure to the conditioned stimulus.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.