What Does Fiscal Policy Primarily Affect in the Short Run

question 99

Multiple Choice

What does fiscal policy primarily affect in the short run?

• A) growth
• B) investment
• C) aggregate demand
• D) aggregate supply

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Definitions:

Endorphins

Neurotransmitters produced by the brain that act as natural painkillers and also boost feelings of pleasure or well-being.

Gate-Control Theory

A theory proposing that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to pass to the brain.

Vestibular Senses

Refer to the sensory system that contributes to balance, spatial orientation, and coordination, primarily involving the inner ear.

Tactile Sense

The sense that allows individuals to perceive touch, texture, and pressure, primarily through skin contact.