When the Economy Is Overheating and Policymakers Pursue Contractionary Fiscal

question 88

Multiple Choice

When the economy is overheating and policymakers pursue contractionary fiscal policy, they express a willingness to trade off _____ output for a _____ price level.

• A) higher; higher
• B) higher; lower
• C) lower; higher
• D) lower; lower

---

Definitions:

Suprachiasmatic Nucleus

A tiny region in the brain's hypothalamus responsible for controlling circadian rhythms, essentially acting as the body's internal clock.

Biological Rhythms

Natural cycles of change in bodily functions or activities, such as the circadian rhythm that governs sleep-wake cycles.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which can cause intense euphoria but also significant physical and psychological harm.

Coca Plant

A plant native to South America, known scientifically as Erythroxylum coca, from which cocaine is derived.