-Using the graph above, suppose it takes policy makers from time t2 to time t4 to take an action to stimulate the economy. What kind of policy lag is this and why does it happen?
Definitions:
Conditioned Stimulus
An initially neutral signal that, through association with an unconditioned stimulus, eventually elicits a conditioned response.
Unconditioned Stimulus
A stimulus that elicits a natural, reflexive response without the need for prior conditioning.
Minimal Effects
Changes or impacts that are barely noticeable or have little to no significant influence on the overall condition or outcome.
Stimulus-Substitution Theory
Pavlov’s view that the pairing of the conditioned stimulus (CS) and unconditioned stimulus (UCS) allows the CS to elicit the unconditioned response (UCR) as the conditioned response (CR).
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