A Contractionary Fiscal Policy Shifts the Aggregate Demand Curve

question 146

Multiple Choice

A contractionary fiscal policy shifts the aggregate demand curve

• A) to the right and is used to close an inflationary gap.
• B) to the right and is used to close a recessionary gap.
• C) to the left and is used to close an inflationary gap.
• D) to the left and is used to close a recessionary gap.

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Definitions:

Autonomous Morality

A stage of moral development where individuals start to understand that moral principles may vary based on context and are not just based on external authority figures or rules.

Moral Development

refers to the process through which individuals develop an understanding of values, ethics, and morality, progressing through various stages of moral reasoning throughout their life.

Immanent Justice

Immanent Justice is a cognitive bias, particularly in children, where it is believed that moral behavior is always rewarded and immoral behavior is always punished, naturally or supernaturally.

Moral Development

The growth of an individual's understanding of the principles of right and wrong and the application of this understanding to behavior.