To Eliminate an Inflationary Gap Using Fiscal Policy, the Government

question 21

Multiple Choice

To eliminate an inflationary gap using fiscal policy, the government could

• A)only decrease taxes.
• B)increase taxes.
• C)increase government expenditure on goods and services and simultaneously decrease taxes by an equal amount.
• D)increase government expenditure on goods and services and simultaneously increase taxes by an equal amount.
• E)decrease the quantity of money.

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Definitions:

Differential Diagnosis

The process of distinguishing between two or more conditions that share similar signs or symptoms.

Social Validity

A term used to describe both target behaviors and the outcome of intervention. Social validity refers to the extent to which behaviors targeted for intervention and the effects of intervention enhance the quality of students’ lives.

Replacement Behavior

A behavior that is taught and reinforced to replace an undesirable behavior in a positive manner.

Contextual Hypotheses

Theories or assumptions that explain how the context or environment influences behaviors, thoughts, or outcomes.