Expansionary Fiscal Policy

question 2

Multiple Choice

Expansionary fiscal policy

• A)increases long- run aggregate supply.
• B)decreases aggregate demand.
• C)increases aggregate demand.
• D)increases short- run aggregate supply.
• E)A, C, and D are correct.

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Definitions:

Learned Helplessness

A state where an individual experiences feelings of being powerless, resulting from a traumatic experience or ongoing inability to achieve success.

Seligman

A psychologist known for his work on learned helplessness and positive psychology.

Wolpe

Joseph Wolpe, a South African psychiatrist known for developing systematic desensitization, a method used in behavioral therapy to overcome phobias and anxiety.

Insight Learning

A form of problem solving where the solution suddenly comes to the individual in a sort of “aha” moment, without trial and error.