Table 15-2 -Refer to Table 15-2.Consider the Hypothetical Information in the Table

question 51

Multiple Choice

Table 15-2

-Refer to Table 15-2.Consider the hypothetical information in the table above for potential real GDP,real GDP,and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy.If the Fed wants to keep real GDP at its potential level in 2017,it should

• A)buy Treasury securities.
• B)sell Treasury securities.
• C)increase the required reserve ratio.
• D)increase income taxes.

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Definitions:

Swift Punishment

Immediate correction or discipline following an undesirable behavior, intended to discourage repetition of such behavior.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, eventually triggers a conditioned response.

Effective Punishment

A form of discipline that successfully reduces or eliminates undesirable behaviors, often by introducing a negative consequence in response to the behavior.

Disciplinary Procedure

A formal process followed by an organization to address an employee's conduct or performance that does not meet the expected and established standards.