To Fight Recession, the Government May

question 7

Multiple Choice

To fight recession, the government may

• A)decrease aggregate demand, which will also lead to lower unemployment rates.
• B)increase aggregate demand, which will also lead to higher price levels.
• C)increase aggregate demand, which will also lead to lower price levels.
• D)decrease aggregate demand, which will also lead to higher unemployment rates.

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Definitions:

Utilitarian Function

A concept in psychology suggesting that attitudes serve a practical function for individuals, helping them to avoid pain or achieve pleasurable outcomes.

Ego-Defensive Function

A psychological mechanism in which individuals protect their self-esteem or ego from being threatened by unpleasant realities or by rationalizing their failures.

Value-Expressive Function

The role or purpose of attitudes or behaviors in expressing an individual's values, beliefs, and self-concept, often influencing consumer choices and affiliations.

Functional Theory

A theory that attempts to explain why certain behaviors, structures, or institutions exist based on the functions they perform.