The Fiscal Policy Response to the Recession of 2008-2009 Was

question 47

Multiple Choice

The fiscal policy response to the recession of 2008-2009 was

• A) a substantial increase in the budget deficit just as Keynesian analysis would recommend.
• B) a balanced budget, just as Keynesian analysis would recommend.
• C) a substantial increase in the budget deficit, which was highly inconsistent with Keynesian analysis.
• D) a shift of the federal budget toward a large surplus, which  reflected the views of the critics of Keynesian economics.

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Definitions:

Prolonged Stress

Extended exposure to stressful situations or stimuli, which can have negative long-term effects on health and well-being.

Aerobic Exercise

Physical activity that improves cardiovascular health by increasing the heart rate and maximizing the amount of oxygen in the blood.

Stress-Moderating Hormone

Hormones that play a role in the body's response to stress, helping to regulate or moderate the stress response.

Oxytocin

A hormone produced by the hypothalamus and secreted by the pituitary gland, often associated with social bonding, sexual reproduction, and childbirth.