If Real GDP Is Less Than Potential GDP, Which of the Following

question 208

Multiple Choice

If real GDP is less than potential GDP, which of the following fiscal policies would increase real GDP?

• A) only a decrease in government expenditure
• B) only an increase in taxes
• C) an increase in government expenditure and/or a decrease taxes
• D) a decrease in government expenditure and/or an increase taxes

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Definitions:

Diabetes Management

The process of monitoring and regulating blood glucose levels through lifestyle choices, medication, and potentially insulin therapy to manage diabetes.

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease, heart attacks, and stroke.

Type 2 Diabetes

A chronic condition characterized by high blood sugar levels due to the body’s inability to use insulin properly, often associated with obesity and lifestyle factors.