"Expansionary Fiscal Policy Is Needed to Increase Real GDP ---

question 11

Multiple Choice

"Expansionary fiscal policy is needed to increase Real GDP --- at least in the short run." The economist who said this most likely believes that

• A) the tax multiplier is larger than the government spending multiplier.
• B) the AS curve is vertical.
• C) there will be a great deal of crowding out connected with a rise in government spending.
• D) the AS curve is upward-sloping.
• E) c and d

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Definitions:

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to various areas of the brain.

Sensory Inputs

The information received by the body's sensory systems, like sight, sound, touch, taste, and smell.

Hormone Function

The role hormones play in regulating various physiological processes including growth, metabolism, reproduction, and mood regulation.

Neocortex

The part of the brain involved in higher-order brain functions such as sensory perception, cognition, generation of motor commands, spatial reasoning, and language.