Which of the Following Is an Appropriate Fiscal Policy Prescription

question 92

Multiple Choice

Which of the following is an appropriate fiscal policy prescription for the government to follow?

• A)Deficit reduction during a recession.
• B)Deficit reduction when there is excess AD.
• C)Deficit expansion in an inflationary gap.
• D)Deficit reduction during a war.

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Definitions:

Id

A component of personality in psychoanalytic theory, it represents the instinctual drives and is the source of basic impulses and desires.

Ego

The part of the psyche in psychoanalysis that deals with reality, operating on the reality principle and mediating between the desires of the id and the morals of the superego.

Superego

In Freudian psychoanalysis, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Free Will

The concept that human beings have the power to make choices and decisions without constraints, implying a degree of autonomy and self-determination.