Suppose That the Goal of Policy Were to Increase GDP

question 31

Multiple Choice

Suppose that the goal of policy were to increase GDP without putting upward pressure on interest rates. If the IS-LM construction displayed the usual slopes, then an appropriate mix of policies would be

• A) a reduction in the money supply coupled with a reduction in government spending.
• B) an increase in government spending, a reduction in taxes, and an increase in the supply of money.
• C) a reduction in the supply of money coupled with an increase in taxation.
• D) an increase in government spending coupled with some strict price controls that would fix the price level at the original level.
• E) none of the above.

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Definitions:

Gangs

Organized groups often engaged in illegal activities and identified by their distinct collective identity.

Sports

Competitive physical activities or games which, through casual or organized participation, aim to use, maintain or improve physical ability and skills.

Self-understanding

An individual’s conception and perception of themselves, including their identity, values, and beliefs, which influences their behavior and interactions.

Atypical Identities

Identities that fall outside what is considered normal or typical within a specific cultural or social context, often challenging conventional categories.