Other Things Equal, an Increase in the Price Level ________

question 50

Multiple Choice

Other things equal, an increase in the price level ________ the equilibrium interest rate and ________ equilibrium output.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Punishing Event

An event or stimulus that decreases the likelihood of the behavior that it follows, often used in behavior modification techniques.

Negative Reinforcement

A behavior modification process where the removal of an unfavorable outcome or stimulus strengthens a desired behavior.

Positive Reinforcement

Increasing behaviors by presenting positive reinforcers. A positive reinforcer is any stimulus that, when presented after a response, strengthens the response.

Discriminative Stimulus

A stimulus in the environment that increases the likelihood of a particular response being emitted due to its association with a reinforcement.