Suppose That Consumer Spending Is Expected to Decrease in the near Future.If

question 20

Multiple Choice

Suppose that consumer spending is expected to decrease in the near future.If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?

• A)An increase in government spending
• B)Aan increase in taxes
• C)A reduction in government spending
• D)No change in taxes or government spending

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Definitions:

Neural Networking

A computational approach inspired by the network of neurons in the brain, used to approximate complex functions and patterns.

Action Potentials

Rapid and temporary electrical signals in neurons that propagate along an axon to transmit information.

Pituitary Gland

A small endocrine gland located at the base of the brain that produces hormones which regulate growth, metabolism, and reproduction.

Adrenal Glands

Small glands located on top of each kidney that produce a variety of hormones including adrenaline and cortisol, involved in stress responses.