The Principle Underlying Fiscal Policy Suggests That When Unemployment Is

question 66

Multiple Choice

The principle underlying fiscal policy suggests that when unemployment is rising and the economy is going into a recession, fiscal policy should

• A) stimulate economic activity by increasing government spending, decreasing taxes, or both.
• B) regulate the action-reaction syndrome.
• C) let the forces of supply and demand operate on their own.
• D) curb economic activity by reducing government spending.
• E) curb economic activity by increasing taxes.

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Definitions:

Haplodiploidy Hypothesis

A theory related to social behavior in insects, suggesting that the unusual sex determination system of haplodiploidy contributes to the evolution of eusociality, especially in bees, ants, and wasps.

Kin Selection

A biological approach that prioritizes the reproductive achievements of an organism's kin, sometimes sacrificing the organism's own life and reproductive potential.

Coefficient of Relatedness

A measure of the genetic similarity between individuals, used to predict the likelihood of altruistic behavior.

Evolution of Altruism

The process through which selfless behaviors that benefit other individuals at a cost to oneself become advantageous in evolutionary terms.