The Negative Supply Shock of 2007,compared to the Shocks in 1973

question 45

Multiple Choice

The negative supply shock of 2007,compared to the shocks in 1973 & 1979,involved ________.

• A)a larger decrease in aggregate demand
• B)larger decreases in the real interest rate
• C)smaller decreases in aggregate supply
• D)larger increases in the real interest rate

---

Definitions:

Extrinsic Reinforcement

Motivation or reward that comes from outside an individual, such as money, grades, or praise, which can influence behavior.

Higher-Order Reinforcement

A process in which reinforcement is given for behavior that meets or exceeds a previously established criterion of performance.

Secondary Reinforcement

A conditioning process where a stimulus reinforces a behavior after it has been associated with a primary reinforcer.

Shaping

A method of operant conditioning by which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.