Contractionary fiScal Policy Is So Named Because It

question 259

Multiple Choice

Contractionary fiscal policy is so named because it

• A) involves a contraction of the nation's money supply.
• B) necessarily reduces the size of government.
• C) is aimed at reducing aggregate demand and thus achieving price stability.
• D) is expressly designed to expand real GDP.

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Definitions:

Recombination

The process by which pieces of DNA are broken and recombined to produce new combinations of alleles.

Genetic Variation

The diversity in gene frequencies within a population, which is the basis for adaptation and evolution.

Evade

The act of escaping or avoiding something, often by cunning or skill.

Immune System

The complex network of cells, tissues, organs, and the substances they produce, which helps protect the body from infections and diseases.