To Try to Stimulate Aggregate Demand to End a Recession

question 71

Multiple Choice

To try to stimulate aggregate demand to end a recession, a government could:

• A) reduce the money supply or contract fiscal policy to decrease total spending.
• B) reduce the money supply or contract fiscal policy to increase total spending.
• C) increase the money supply or expand fiscal policy to decrease total spending.
• D) increase the money supply or expand fiscal policy to increase total spending.

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Definitions:

Post Hoc

The fallacy of using the fact that one event preceded another as sufficient evidence for the conclusion that the first caused the second.

Fallacy

An incorrect reasoning technique that spoils the legitimacy of an argument.

Chewing Gum

A soft, cohesive substance designed to be chewed without being swallowed, often used to freshen breath or for enjoyment.

Arm Sore

A physical condition often resulting from excessive use or exertion of the arm muscles, leading to discomfort or pain.