Which of the Following Is the Correct Sequence of Events

question 99

Multiple Choice

Which of the following is the correct sequence of events by which fiscal policy impacts unemployment?

• A) An increase in government spending causes an increase in aggregate demand, which leads to higher output with more jobs.
• B) An increase in government spending causes an increase in short-run aggregate supply, which leads to higher output and more jobs.
• C) A decrease in government spending causes an increase in short-run aggregate supply, which leads to higher output and more jobs.
• D) An increase in taxes causes a decrease in aggregate demand, which leads to lower output and more jobs.

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Definitions:

Comparative Inference

The process of reaching conclusions about the relationships between different sets of data or phenomena based on comparisons.

Productivity

The capacity of a comparison to suggest consequences that go beyond those mentioned in the initial comparison.

Pattern Recognition

The identification of regularities or recurring sequences in data or objects, often used in machine learning and cognitive psychology.

Comparative Inference

The process of drawing conclusions by comparing different sets of data or situations.