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

---

Definitions:

Manic Episodes

Periods of abnormally elevated mood, energy, and activity levels, often characteristic of bipolar disorder.

Bipolar Disorder

A mental disorder marked by alternating periods of elation and depression.

Bipolar Disorder

A mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Mood Stabilize

The process of using medication or therapy to keep mood levels within a normal range, especially in individuals with mood disorders.