If the Economy Is in a Recession and Prices Are

question 171

Multiple Choice

If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be

• A) increased government spending or increased taxation, or a combination of the two actions.
• B) increased government spending or decreased taxation, or a combination of the two actions.
• C) increased government spending or increased taxation, but not a combination of the two actions.
• D) decreased government spending or decreased taxation, or a combination of the two actions.

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Definitions:

Physician

A health care professional who practices medicine, tasked with diagnosing and treating illnesses, diseases, and injuries.

Abdomen

The part of the body that lies between the chest and pelvis, containing most of the tubular organs of the digestive system, as well as the liver, kidneys, and spleen.

Anesthesia

A medical treatment that involves the use of drugs to prevent pain during surgery, producing a state of unconsciousness or numbness.

Delivery

Delivery refers to the process of giving birth to a baby, marking the end of pregnancy and the transition of the fetus from the uterus to the external environment.