Which of the Following Statements About Fiscal Policy Is the Best

question 72

Multiple Choice

Which of the following statements about fiscal policy is the best example of "gross tuning"?

• A)The government continuously alters its spending and taxing plans to hold real GDP at potential.
• B)The government cuts taxes to remove a large and persistent recessionary gap.
• C)The government increases its spending to reduce an inflationary gap.
• D)The government decreases tax rates to decrease an inflationary gap.
• E)The government uses automatic stabilizers to reduce any output gaps.

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Definitions:

IPSPs

Inhibitory postsynaptic potentials, which are synaptic potentials that make a neuron less likely to generate an action potential, often associated with the flow of negative ions into a cell or positive ions out of a cell.

EPSPs

Excitatory Postsynaptic Potentials are electrical charges that increase the likelihood of a neuron firing an action potential.

Temporal Summation

The summing of several postsynaptic potentials produced when a single presynaptic neuron fires multiple times

Spatial Summation

The process by which multiple synaptic potentials combine within one postsynaptic neuron, potentially leading to an action potential.