In 2009, Output Was Beneath Potential

question 32

Multiple Choice

In 2009, output was beneath potential. At the same time, the budget deficit hit a record high of over $1 trillion. If President Obama were to have pursued budget cuts, given the state of the economy, these spending cuts would have:

• A)been procyclical.
• B)been countercyclical.
• C)increased interest rates.
• D)crowded out investment.

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Definitions:

STEM Field

Refers to disciplines in Science, Technology, Engineering, and Mathematics, areas that are critical to innovation and technological advancements.

Emerging Adulthood

A phase of life between adolescence and full-fledged adulthood, typically ranging from the late teens through the twenties, characterized by exploration and instability in love, work, and worldviews.

Stable Period

A time frame in which conditions remain constant or unchanged, allowing for predictability and consistency in certain aspects of life or environment.

Vocational Training

Education or training that prepares individuals for specific trades, crafts, or careers at various levels from a trade, a craft, technician, or a professional position in engineering, accountancy, nursing, medicine, architecture, pharmacy, law etc.