According to a Classical, Sound Finance Perspective on Macroeconomics, If

question 63

Multiple Choice

According to a Classical, sound finance perspective on macroeconomics, if an economy is on an inflationary path, the government should run:

• A)a budget deficit and increase spending, which will reduce output.
• B)a budget surplus and decrease spending, which will reduce output.
• C)neither a surplus nor a deficit since changes in deficit spending do not affect output.
• D)neither a surplus nor a deficit since changes in spending affect output.

---

Definitions:

UV Radiation

Ultraviolet radiation, a type of energy emitted by the sun and artificial sources, which is invisible to the human eye and can cause skin damage.

Extinct Species

Species that no longer exist; having no living members.

Biotic Pollution

The introduction of harmful living organisms into ecosystems, leading to negative effects on native species and their habitats.

Unregulated Hunting

Hunting without restrictions or oversight, which can lead to overexploitation and significant declines in wildlife populations.