Choose the Correct Statement

question 96

Multiple Choice

Choose the correct statement.

• A)Contractionary fiscal policy can eliminate inflationary pressure.
• B)Eliminating an inflationary gap is very simple - calculate the size of the gap and the size of the multiplier, then change government expenditure for an immediate decrease in real GDP.
• C)When an economy is in an above full-employment equilibrium, an equal decrease in government expenditure and autonomous taxes cannot return the economy to full employment.
• D)When an economy is in an above full-employment equilibrium, an increase in taxes will decrease aggregate demand, but because the autonomous tax multiplier is smaller than the government expenditure multiplier, the economy will not return to potential GDP.
• E)All of the above

Assess the impact of Prohibition and its eventual failure on American society.

Recognize the influence of immigration policies and attitudes towards immigrants in the 1920s.

Understand the dynamics of racial relations and the KKK’s resurgence during this period.

Understand the sequence and relationship between invention, innovation, and diffusion within the technological advancement process.

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Definitions:

Group Interaction

The process of communication and interaction that takes place among members of a group, influencing dynamics, decision-making, and individual behavior.

External View

Looking at a situation or problem from an outsider's perspective, which can help in understanding the broader context or seeing solutions not apparent from an internal viewpoint.

Instantaneous Changes

Sudden alterations or transitions in behavior, thought, or condition that occur without a gradual progression.

Overwhelming Others

Exerting intense pressure or influence on others that can lead to stress or discomfort.