If the Government Wants to Engage in Fiscal Policy to Increase

question 233

Multiple Choice

If the government wants to engage in fiscal policy to increase real GDP, it could

• A) decrease government expenditure in order to increase short-run aggregate supply.
• B) decrease government expenditure in order to decrease aggregate demand.
• C) increase government expenditure in order to increase short-run aggregate supply.
• D) increase government expenditure in order to increase aggregate demand.

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Definitions:

Evolutionary Benefits

Advantages conferred by certain traits or behaviors that enhance an organism's reproductive success and survival, guided by natural selection.

Social Existence

The way in which individuals live, interact, and coexist with one another within societies and various social structures.

Liabilities

Financial obligations or debts that an individual, company, or other organization owes, which are expected to be paid in the future.

Communal Orientation

An attitude or approach that emphasizes the welfare and interests of the community or group over individual gains.