The Aim of Countercyclical Fiscal Policy Is to

question 55

Multiple Choice

The aim of countercyclical fiscal policy is to

• A)shift the inflation adjustment line so that real GDP is equal to potential GDP.
• B)reduce unemployment.
• C)reduce inflation.
• D)increase potential GDP.
• E)shift the aggregate demand curve so that real GDP equals potential GDP.

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Definitions:

Holocaust

The genocide of approximately six million Jews during World War II by Nazi Germany, led by Adolf Hitler, along with the persecution and killing of millions of others.

Jim Crow

Refers to the laws and customs enforced in the southern United States post-Reconstruction until the 1960s, aimed at segregating and discriminating against African Americans.

George C. Marshall

A key U.S. military leader during World War II who served as Army Chief of Staff and later as Secretary of State, developing the Marshall Plan to rebuild Europe's economy.

European Recovery Plan

The European Recovery Plan, also known as the Marshall Plan, was an American initiative after World War II to aid Western Europe, in which the U.S. provided substantial financial assistance to rebuild European economies and prevent the spread of Soviet communism.