If the Effects of Contractionary Fiscal Policy Hit When the Economy

question 80

Multiple Choice

If the effects of contractionary fiscal policy hit when the economy is already contracting,

• A) the effects could lead to even deeper recession.
• B) the policy will have no effect.
• C) the policy is called an automatic stabilizer.
• D) it may lead to excessive aggregate demand and inflation.
• E) it will lead to stagflation.

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Definitions:

Neural Crest

A population of cells in vertebrate embryos that arises from the embryonic ectoderm and migrates to form diverse cell types, including melanocytes, craniofacial cartilage, and neurons.

Organogenesis

The phase during embryonic development where organs form from the three germ layers, setting the foundation for functional body systems.

Embryonic Development

The process of development of a new organism from a single-celled zygote to a complex structure composed of multiple cells and tissues.

Induction

A process in developmental biology where one cell or tissue type influences the development of another cell or tissue type, leading to a specific developmental pathway or pattern.