One Reason the Government Will Enact Fiscal Policy Instead of Waiting

question 16

Multiple Choice

One reason the government will enact fiscal policy instead of waiting for the economy to correct itself is because the automatic adjustment:

• A) can take a very long time.
• B) leads to a lower level of potential GDP.
• C) will cause inflation.
• D) causes greater turbulence in the economy.

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Definitions:

Stimulants

Substances that increase nervous system activity, resulting in enhanced alertness, attention, and energy, which can include drugs like caffeine, nicotine, and amphetamines.

Consciousness

The ability to understand and contemplate one's own reality, feelings, mental processes, setting, and personal experiences.

Behaviorist

A psychologist who studies and applies the principles of behaviorism, a theory of learning that emphasizes observable behaviors over internal psychological processes.

Narcotics

Drugs that relieve pain and often produce a state of stupor or sleep; legally, narcotics can refer to substances controlled or prohibited by law due to their potential for abuse or addiction.