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:

Significant Others

People who have a major impact on one's life, often influencing one's behavior and beliefs.

Work Group

A collection of individuals who collaborate towards achieving a common goal, often characterized by shared responsibilities and interdependence.

Peers

Individuals who are equal to one another in terms of status, age, or another specific criterion, often considered within a social or professional context.

Core Values

Fundamental beliefs or principles that act as guiding lights for behavior and decision-making within an organization or individual life.