One Advantage of Using Expansionary Fiscal Policy Rather Than Relying

question 85

Multiple Choice

One advantage of using expansionary fiscal policy rather than relying on automatic adjustment to recover from a recessionary gap is that

• A)the economy will overshoot potential GDP and a boom will be underway.
• B)inflation will not be as stimulated.
• C)price level will rise higher than otherwise.
• D)the recovery is likely to be more rapid.
• E)the recovery will be slower,thereby causing less disruption.

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Definitions:

Nonverbally

Communicating without the use of spoken language, often through gestures, body language, or facial expressions.

Visualizing

The practice of forming mental images or concepts of what is not physically present or has not yet occurred, often used as a technique to enhance performance or achieve goals.

Formal Channels

Official, established pathways for communication or processes within an organization.

Proximity

The physical or psychological closeness between people, objects, or concepts, influencing interactions and relationships.