Suppose the Economy Has a High Level of Unemployment and a Low

question 140

Multiple Choice

Suppose the economy has a high level of unemployment and a low level of aggregate output.Which of the following policies could the government implement to alleviate these conditions?

• A)an expansionary fiscal policy that increases tax rates
• B)a contractionary fiscal policy that increases government purchases
• C)automatic fiscal stabilizers
• D)a contractionary fiscal policy that increases tax rates
• E)an expansionary fiscal policy that increases government purchases

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Definitions:

Pine Ridge Indian Reservation

A reservation home to the Oglala Sioux Tribe, located in South Dakota, historically significant for its role in Native American history and ongoing struggles.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

75 Percent

This key term lacks context on its own and therefore cannot be provided with a specific definition without additional information. NO.

Suburban America

Refers to the residential areas situated on the outskirts of city centers, characterized by single-family homes and a perceived middle-class lifestyle.