In the Mid-To-Late 1990s,changes in the Health Care Industry,substantially Reduced

question 66

Multiple Choice

In the mid-to-late 1990s,changes in the health care industry,substantially reduced health care costs relative to other goods and services.Which of the following is an appropriate description of the mechanism behind this supply shock?

• A)The AS curve likely shifted to the right which likely explains the short-run fall in unemployment.
• B)The ensuing increase in productive capacity led to the rightward shift of the LRAS which is a likely explanation for the protracted decline in the unemployment rate of the 1990s.
• C)A positive output gap would have resulted in the short-run but it was eventually closed by a rightward shift of the LRAS which is a likely explanation for the protracted decline in the inflation rate of the 1990s.
• D)all of the above
• E)none of the above

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, through which associations are made between a behavior and the consequences for that behavior.

Extinction

In the study of psychology, this term describes the slow reduction and final elimination of a conditioned response due to the absence of pairing between the conditioned and unconditioned stimuli.

Stimulus Discrimination

The learned ability to differentiate between a conditioned stimulus and other stimuli that have not been paired with an unconditioned stimulus.

Classical Conditioning

A training method where two signals are consistently associated with each other; a reaction initially triggered by the second signal ultimately becomes triggered by just the first signal alone.