Suppose That in Year 2 There Was a Higher Federal

question 37

Multiple Choice

Suppose that in Year 2 there was a higher federal budget deficit than in Year 1. This could be explained by _ in Year 2.

• A)lower real GDP (with fiscal policy constant)
• B)lower real interest rates.
• C)higher real GDP (with fiscal policy constant)
• D)a lower primary budget surplus
• E)lower government expenditure (with real GDP constant)

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Definitions:

Negative Emotions

Feelings that are generally considered to be unpleasant or disadvantageous, such as sadness, anger, or fear.

High Road

Taking the ethical or moral course of action, even if it is difficult or less advantageous.

Emotional Responses

Emotional responses are the feelings and reactions that arise in response to stimuli or situations, influenced by individual's mood, temperament, and experiences.

Two-Factor Theory

A theory that proposes emotions are based on physiological arousal and the cognitive interpretation of that arousal.