Which of the Following Statements About Fiscal Policy Is the Best

question 72

Multiple Choice

Which of the following statements about fiscal policy is the best example of "gross tuning"?

• A)The government continuously alters its spending and taxing plans to hold real GDP at potential.
• B)The government cuts taxes to remove a large and persistent recessionary gap.
• C)The government increases its spending to reduce an inflationary gap.
• D)The government decreases tax rates to decrease an inflationary gap.
• E)The government uses automatic stabilizers to reduce any output gaps.

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Definitions:

Arthur Tappan

A nineteenth-century American abolitionist and philanthropist who played a significant role in the anti-slavery movement and helped establish several anti-slavery societies.

Black Church Goers

Members of the African American community who regularly attend church services, often associated with a rich tradition of spiritual and community support within Black churches.

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, emphasizing love, redemption, and the concept of salvation.

Equality Before God

The theological or philosophical concept that all human beings are equal in the eyes of a divine power or God, regardless of social, economic, or ethnic differences.