Mainstream Macroeconomics Would Suggest That fiScal Policy

question 124

Multiple Choice

Mainstream macroeconomics would suggest that fiscal policy

• A) affects GDP and the price level through changes in aggregate supply.
• B) changes aggregate demand and GDP through the multiplier process.
• C) has no effect unless the fiscal policy is accompanied by changes in the money supply.
• D) is relatively ineffective because the outcomes are anticipated and offset.

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Definitions:

Birdsong Learning

The process by which young birds learn to produce vocalizations typical of their species, often involving imitation and practice.

Operant Conditioning

A developmental approach where the strength of a certain behavior is shaped through the application of incentives or penalties.

Species Evolve

The process by which biological species undergo change over time through variations in genetics, behavior, or physical characteristics, leading to the development of new species or adaptation within a species.

Sensitive Period

A specific time frame in development when the organism is particularly responsive to certain environmental stimuli or experiences.