When Using Discretionary Fiscal Policy to Counter a Fluctuation in the Economy

question 61

Multiple Choice

When using discretionary fiscal policy to counter a fluctuation in the economy, policymakers should

• A)make sure the policy is carried out in a timely manner.
• B)use government purchases as an instrument only if the economy is in a recession.
• C)use taxes as an instrument only if the economy is in a boom.
• D)make sure that changes in government purchases will have an effect on real GDP.
• E)make sure that transfer payments are held constant.

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Definitions:

Neurotransmitter

Chemical messengers that transmit signals across a synapse from one neuron to another.

Taste Cell

A type of cell found in the taste buds that is responsible for sensing taste stimuli.

Taste Pore

An opening on the surface of the taste bud through which tastants (taste substances) enter.

Taste Hair

Microscopic hair-like structures on taste buds that interact with food molecules to perceive taste.