Refer to the Diagram

question 161

Multiple Choice

Refer to the diagram. If the full-employment level of GDP is D, then it would be appropriate fiscal policy for government to

• A) decrease spending and increase taxes.
• B) decrease spending and decrease taxes.
• C) increase spending and increase taxes.
• D) increase spending and decrease taxes.

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Definitions:

Id

In Freudian psychoanalytic theory, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of basic needs.

Free Association

A psychoanalytic therapy technique where patients are encouraged to voice thoughts without censorship as they occur.

Hypnosis

State of consciousness in which the person is especially susceptible to suggestion.

Psychoanalytic Method

The psychoanalytic method is a therapeutic approach developed by Sigmund Freud, focusing on exploring unconscious conflicts and motivations through techniques such as free association and dream analysis.