A Government Might Want to Reduce Aggregate Demand If It

question 149

Multiple Choice

A government might want to reduce aggregate demand if it believes that the economy is

• A) in long-run equilibrium.
• B) above the natural rate of unemployment.
• C) producing below full-employment output.
• D) expanding past its long-run capabilities.
• E) in a recession.

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Definitions:

Obstetrician

A doctor who specializes in pregnancy, childbirth, and a woman's reproductive system, including the care of women having high-risk pregnancies.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured to assess heart health.

Respiratory Rate

The number of breaths a person takes per minute, which is an important vital sign indicating respiration health.

Menopause

A phase in a woman's life marked by the cessation of her menstrual periods, typically occurring in middle age.