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.

---

Definitions:

Stage

A specific phase or period in a process or the progression of an event or disease.

Oil-immersion Objective

A microscope lens designed to be used with a drop of oil to increase magnification and resolution of microscopic images.

High Magnification

Refers to the ability of an optical system, such as a microscope, to make small objects appear significantly larger, allowing for detailed observation.

Air Space

The portion of the respiratory system where gas exchange occurs; can also refer to the cavity within the alveoli in the lungs.