Suppose That Consumer Spending Is Expected to Decrease in the near Future

question 96

Multiple Choice

Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?

• A)An increase in government spending
• B)An increase in taxes
• C)A reduction in government spending
• D)No change in taxes or government spending

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Definitions:

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, usually caused by blood clots that travel to the lungs from the legs or other parts of the body.

Bariatric Surgery

Surgical procedures performed on the stomach or intestines to induce weight loss, usually recommended for cases of severe obesity.

Cholecystectomy

A surgical procedure to remove the gallbladder, often due to the presence of gallstones or other gallbladder diseases.

Hyperglycemia

A condition characterized by an excessively high level of glucose in the blood, often associated with diabetes.