Fiscal Policy Refers to

question 330

Multiple Choice

Fiscal policy refers to

• A) deliberate changes in government spending and taxes to promote economic growth, full employment, and price level stability.
• B) deliberate changes in government spending and taxes to achieve greater equality in the distribution of income.
• C) altering of the interest rate to change aggregate demand.
• D) fact that equal increases in government spending and taxation will be contractionary.

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Definitions:

Medial Prefrontal Cortex

A part of the frontal lobe of the brain involved in decision-making, social behavior, and personality expression.

Operant Conditioning

Form of learning in which behaviors lead to consequences that either reinforce or punish the organism, leading to an increased or a decreased probability of a future response.

Observational Learning

Learning that occurs when a person observes the rewards and punishments of another’s behavior and then behaves in accordance with the same rewards and punishments.

Social-cognitive Learning

A theory that posits learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.