If an Economy Is in an Equilibrium with an Inflationary

question 105

Multiple Choice

If an economy is in an equilibrium with an inflationary gap, policy-makers can use

• A)discretionary fiscal policy and cut taxes.
• B)automatic fiscal policy and increase government expenditure.
• C)discretionary fiscal policy and increase government expenditure.
• D)automatic fiscal policy and cut taxes.
• E)discretionary fiscal policy and decrease government expenditure.

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Definitions:

Mutation Events

Changes in the genetic sequence that can occur spontaneously or due to environmental exposure, which can lead to variations in traits among organisms.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, essential for sexual reproduction.

Sex Cell

A type of reproductive cell in an organism that unites with another from the opposite sex (or mating type) to form a new individual.

Segregation

The enforced separation of different racial or social groups within a community, institution, or country, leading to inequality.