Which of the Following Statements About Fiscal Policy Is the Best

question 48

Multiple Choice

Which of the following statements about fiscal policy is the best description of "fine 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:

Impaired Home Maintenance

Difficulty in managing and maintaining the daily tasks required to keep a home environment clean, safe, and organized.

Family Processes

The dynamic interactions and patterns of behavior within a family, influencing and being influenced by individual members.

Poorly Controlled Diabetes

A situation where an individual's blood sugar levels remain consistently higher than target goals, indicating ineffective management of the condition.

Capillary Blood Glucose

The measure of the sugar level in the blood at any given time, obtained from a small blood sample usually taken from a fingertip.