If Real GDP Is Less Than Potential GDP, Which of the Following

question 108

Multiple Choice

If real GDP is less than potential GDP, which of the following fiscal policies would increase real GDP?

• A) decrease government expenditure and/or increase taxes
• B) increase government expenditure and/or decrease taxes
• C) only an increase taxes
• D) only a decrease government expenditure

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Definitions:

Underprivileged Children

Children who lack the economic, social, and educational advantages of their peers, often leading to disparities in health, achievement, and opportunities.

Delinquent

Refers to a minor who engages in behavior against the law or conducts themselves in a criminal manner.

Fundamentalist Upbringing

Being raised in a religious environment that adheres strictly to the foundational principles of the faith, often with literal interpretations of sacred texts.

Non-Directive Therapy

A client-centered therapy developed by Carl Rogers where the therapist encourages self-discovery by refraining from directive advice or judgment.