The Aim of Countercyclical Fiscal Policy Is to

question 55

Multiple Choice

The aim of countercyclical fiscal policy is to

• A)shift the inflation adjustment line so that real GDP is equal to potential GDP.
• B)reduce unemployment.
• C)reduce inflation.
• D)increase potential GDP.
• E)shift the aggregate demand curve so that real GDP equals potential GDP.

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Definitions:

Organizations

Groups of individuals structured to achieve common goals or objectives, which can include businesses, government agencies, non-profits, and more.

Voluntary Non-Insurance

A decision by individuals or entities to not purchase insurance coverage for potential risks, relying instead on self-funding for losses.

Retirement Income

The funds or revenue an individual receives after retiring from employment, often from savings, pensions, or government programs.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.