One Advantage of Using Expansionary Fiscal Policy Rather Than Relying

question 53

Multiple Choice

One advantage of using expansionary fiscal policy rather than relying on automatic adjustment to recover from a recessionary gap is that

• A)the economy will overshoot potential GDP and a boom will be underway.
• B)inflation will not be as stimulated.
• C)the recovery may be more rapid.
• D)the recovery will be slower, thereby causing less disruption.
• E)price level will rise higher than otherwise.

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Definitions:

Illusionistic Perspective

An artistic technique used to create the illusion of depth and three-dimensionality on a flat surface, often seen in Renaissance paintings.

Concrete Irrationality

A notion in philosophy that suggests the presence of irrational aspects in concrete reality, challenging the predominance of rational thought in understanding existence.

René Magritte

A Belgian surrealist artist known for his thought-provoking images that challenge observers' preconditioned perceptions of reality.

Salvador Dalí

was a Spanish surrealist artist known for his eccentric and dream-like paintings, sculptures, and other creative works.